India’s third-largest private sector bank, Axis bank, on Thursday, announced that they have signed an MOU with IPE Global Ltd for the SAMRIDH Healthcare Blended Finance Facility. The bank took the decision driven by the aim to strengthen healthcare infrastructure and the effects of the COVID-19 pandemic that poses a great risk to the health and safety of India’s population. The continued threat of newly mutated variants has reinforced the need to boost investments and partnerships in the health sector.
“The healthcare segment has been a key focus area for Axis Bank, and we have been supporting various entities impacted by the COVID-19 pandemic. Our partnership with SAMRIDH will enable the Bank to extend the much-needed debt support to more entities that are working to strengthen India’s healthcare infrastructure, to deal with the third wave of the pandemic and any other emerging healthcare challenges”.Subrat Mohanty, Group Executive – Axis Bank Business Group, Axis Bank
Under this partnership, Axis Bank will provide affordable finance of up to $150 million through SAMRIDH, to support health enterprises and innovators who would otherwise be unable to obtain affordable debt financing. The ability to access loans will enable them to increase production and implement advanced health solutions to address COVID-19 along with other health emergencies, especially across the vulnerable communities of India from Tier 2 and 3 cities.
“Private enterprise is a powerful force for lifting lives, strengthening communities, and accelerating sustainable development. Increasing access to affordable capital for small enterprises with solutions for greater reach will enable long-term impact. This new partnership between Axis Bank and SAMRIDH will further our joint efforts to provide innovative healthcare solutions to some of the most vulnerable people in India.”USAID/India Mission Director Veena Reddy
SAMRIDH, a US Agency for International Development (USAID)-funded initiative, uses philanthropic funding and public sector resources to overcome barriers to commercial investments in small and medium-sized health businesses. SAMRIDH’s efforts to scale market solutions and innovations in the healthcare value chain will be aided by this partnership, which will supplement pharmaceutical manufacturing and distribution, as well as the expansion of public and private hospitals, nursing homes, small clinics, laboratories, and warehouses.