Fusion Micro Finance [BSE (BOM: 543652) and NSE (NSE: FUSION)], a leading Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI) in India, announced the successful closure of a significant loan agreement with the United States International Development Finance Corporation (DFC). The facility amounts to USD 25 million, with an initial disbursement of USD 20 million. This strategic borrowing, compliant with the External Commercial Borrowing (ECB) guidelines, is set to propel Fusion Micro Finance’s mission of advancing financial inclusion and economic empowerment, particularly among women entrepreneurs in rural India.
Empowering Rural Women Entrepreneurs
The funds secured from DFC will be channeled towards expanding Fusion Micro Finance’s operations across India. The primary objective is to provide financial support to women entrepreneurs in underserved rural areas, fostering economic growth and enhancing livelihoods. This initiative aligns with Fusion Micro Finance’s commitment to social responsibility and its long-standing goal of empowering women by offering them the financial tools needed to start and grow their businesses.
Strategic Financial Partnerships
Gaurav Maheshwari, Chief Financial Officer of Fusion Micro Finance Ltd., expressed his enthusiasm about the partnership with DFC. He stated, “We have successfully closed a USD 25 million loan facility from the United States International Development Finance Corporation (DFC), in sync with our strategy to tap varied sources of funds and diversify our liability mix. This borrowing will help in expanding our business operations and loan growth. It is an eight-year loan which will further strengthen our asset-liability mix. We are confident that this landmark transaction will open doors for larger pools of international capital to fund our future growth plans.”
Maheshwari’s comments highlight the strategic importance of this loan facility. By securing funding from an esteemed international institution like DFC, Fusion Micro Finance not only strengthens its financial foundation but also gains enhanced credibility and reputation on the global stage. This partnership signifies a strong vote of confidence in Fusion Micro Finance’s operational resilience, ethical practices, and long-term sustainability.
Leveraging International Capital for Local Impact
The collaboration with DFC is more than just a financial agreement; it represents a shared vision for driving positive social change and economic development. By leveraging this substantial loan facility, Fusion Micro Finance aims to broaden its outreach, delivering critical financial services to marginalized communities that have traditionally been excluded from formal financial systems. This effort will play a crucial role in bridging the economic divide and fostering inclusive growth.
Enhancing Asset-Liability Management
The eight-year loan facility will significantly bolster Fusion Micro Finance’s asset-liability management. This extended loan period provides the company with the flexibility and stability needed to manage its financial operations effectively. It allows Fusion to align its long-term liabilities with its growth objectives, ensuring sustainable expansion and robust financial health.
Future Growth and Expansion
Looking ahead, Fusion Micro Finance is poised to capitalize on this infusion of capital to scale its operations and enhance its impact. The company plans to deepen its presence in rural markets, offering tailored financial products that meet the unique needs of women entrepreneurs. By doing so, Fusion aims to create a ripple effect of economic empowerment, where increased financial independence for women leads to broader community development and upliftment.
