IDBI, German lender KfW join hands to fund MSME, infra sectors

MUMBAI: Public sector lender IDBI Bank said today it had signed a loan $340 million agreement with the German development bank KfW to meet the financing needs of small and medium enterprises as well as the infra sector players.

The 10-year soft-loan has been arranged through IDBI's DIFC Branch in Dubai, the city-based bank said, adding, the money will be used for on-lending directly or indirectly through micro-finance institutions and non-banking finance companies.

Part of the loan is dedicated for select infrastructure projects to support municipalities and communities to improve health and living conditions, the bank said.

KfW Development Bank is one of the world's leading and experienced promotional banks and was established in 1948 as a public law institution. German government owns 80 per cent in the bank with the rest by the other states.