United States International DFC to invest Rs 299 crore in Indian businesses
Announcing the allocation of equity and investment funds in the current quarter, the DFC stated that the agency approved 16 new projects, with the total capital totalling to $1.6 billion. These investments will be received by various projects in the form of political risk insurance products and debt
Representational image. AFP
The US International Development Finance Corporation (DFC) recently announced that the institution will support key sectors in India by investing a capital of $37.5 million, which roughly converts to Rs 299 crores. The investment is expected to fuel the growth of businesses working in sectors like financial services, agriculture, healthcare, and climate.
The US International DFC is a financial institution that channels capital in developing nations. Announcing the allocation of equity and investment funds in the current quarter, the DFC stated that the agency approved 16 new projects, with the total capital totaling to $1.6 billion. These investments will be received by various projects in the form of political risk insurance products and debt financing instruments as well.
The mobilisation of the private sector investment by DFC, the corporation is aiming at helping communities across the globe that are impacted by various issues that are compounding into a crisis. One of the most glaring issues mentioned is Russia’s war against Ukraine, which is limiting access to energy and is inducing food insecurity.
Talking about the $1.6 billion dollar investment, DFC CEO, Scott Nathan, in a statement, said, “The DFC transactions approved this quarter will support priority sectors for development and economic growth, including food security, energy security, climate solutions, and small business growth and recovery.”
In addition to the mentioned sectors, DFC investments will also focus on gender equity and financial inclusion. It will also help in boosting the growth and connectivity in “priority regions including Eastern Europe and Latin America and across strategic sectors like energy, critical minerals, digital connectivity, and shipping and logistics.”
Apart from the $37.5 million investment in India, the DFC has also allocated $100 million debt investment in the Gigaton Empowerment Fund, primarily focusing on SMEs in Asia and Africa to build climate-friendly solutions to increasing demand for energy. $55 million will go to Finanzauto S.A, Colombia, for boosting vehicle access in the area. The largest chunk of the investment, $400 million, is channelised towards energy diversification efforts in Moldova.
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