ADB Approves $150m to Support Microfinance, Sanitation in India

The Asian Development Bank (ADB) has approved today US$150 million equivalent debt financing to India's Janalakshmi Financial Services Private Limited. 
ADB’s funding will support Janalakshmi’s conversion from India’s largest nonbank financial company focused on microfinance lending to a small finance bank. 
ADB’s investment will be used to help Janalakshmi grow its microfinance and SME loan portfolios. At least 50% of the proceeds of ADB’s funding will be deployed by Janalakshmi in less developed states in India and a large proportion will be provided to women. 
The proposed transaction also seeks to support the development and deployment of sanitation loans that complement the government’s sanitation initiatives. 
More than half of Indian households do not have a toilet. In addition to the spread of disease and various health issues that result from mismanagement of waste, women are particularly affected by insufficient household sanitation.
ADB’s funding, in combination with a technical assistance grant, will help to develop and deploy sanitation loan prototypes that can be used by Janalakshmi, as well as other financial institutions throughout India, as a complement to the government’s sanitation initiatives to provide safe, clean, and secure toilet facilities.