IndusInd Bank Receives Funding For Agriculture From Citi And JICA

On Tuesday, it was announced that Japanese lender JICA and Citibank have collaborated to offer a funding line of $125 million to IndusInd Bank, a private sector lender in India. The purpose of this co-finance funding is to support the agricultural sector in the country by providing funds to IndusInd Bank for further lending. This information was shared through an official statement.

Citi and JICA have provided a total loan of $30 million and ¥13 billion respectively to IndusInd Bank. This socially impactful financial offering arranged by Citi is anticipated to enhance financial inclusion for farmers and stimulate investment in India's agricultural sector.

This project aims to aid IndusInd Bank in enhancing its lending operations to the agricultural industry by utilizing its rural outreach. To accomplish this, Citi has come on board as the co-financing lender, arranger, coordinator, and facility agent, thus establishing a collaborative agreement between the two parties.

According to official statistics, the agricultural industry plays a significant role in the Indian economy, contributing around 17% to the GDP and employing approximately 45% of the workforce. As the need to enhance agricultural productivity to boost the income of farmers becomes more pressing, it is imperative to improve access to finance in order to encourage capital investments in the agricultural sector.

This agreement emphasizes that Citi and JICA are committed to enhancing food security in the country by providing financial support to the agricultural sector and promoting sustainable food systems.

According to K Balasubramanian, the head of Citibank's corporate bank in South Asia, IndusInd Bank has a strong presence in important agricultural centers across rural and semi-urban areas. The new facility offered by Citibank will be particularly useful for farmers who need to purchase farm equipment, fertilizers, and seeds. Additionally, small agricultural supply chain service providers will also benefit from this facility. Citibank has previously pledged to invest $1 trillion in sustainable finance by 2030 and aims to provide access to essential services for 15 million underserved and low-income households, including 10 million women.

-PTI

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