CreditAccess Grameen Raises 25 Million Euros From German Investment Corporation DEG

CreditAccess Grameen Ltd. has raised 25 million euros from German Investment Corporation, DEG and Rs 170 crore from Citi via co-financing facility. Citi acted as the lead arranger and coordinator in the agreement, the microfinance institution announced on Friday.

This long-tenor co-financing arrangement is one of its kind in the Indian microfinance industry, representing a significant step in strengthening CreditAccess Grameen's funding profile to further its mission of providing affordable financial services to women entrepreneurs across India, the company said in its exchange filing.

Blended finance tools like co-financing bring together development finance and private sector investments, helping to mobilise funds for sustainable development. This support plays a key role in growing the microfinance sector, enabling it to reach underserved and unserved communities.

CreditAccess Grameen’s customer-focused model provides tailored and responsive services, continuously supporting millions of women in building sustainable livelihoods and achieving financial stability. By maintaining regular interactions and offering timely credit, the lender meets the changing needs of entrepreneurs, setting itself apart from traditional one-time loan models, the filing said.

CreditAccess Grameen's share price fell to hit its lowest level on Friday since Jan. 31, 2023, following Goldman Sachs' double downgrade of its rating for the stock to a 'sell' from 'buy'. The brokerage has also cut its target price significantly.

Shares of CreditAccess Grameen closed 8.55% lower to Rs 902 apiece, compared to 0.91% advance at the benchmark NSE Nifty 50 on Friday. It has fallen 46.68% in the last 12 months and 43.50% on a year-to-date basis.

Of the 19 analysts tracking the company, 14 maintain a 'buy' rating, three recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 21%.