Janalakshmi Debt 2 (IFC-37256)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jan 26, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Janalakshmi Financial Services Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 48.63 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 11, 2018

Disclosed by Bank Jun 2, 2016


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Project Description

The proposed project envisages a senior debt investment in Janalakshmi Financial Services Private Limited (“Janalakshmi” or the “Company”) which is a leading, urban focused microfinance institution (“MFI”) headquartered in Bangalore, Karnataka with a borrower base of more than 4.6 million borrowers and a loan portfolio of approximately INR91 billion (US$1,380 million equivalent) as of March 2016.

Janalakshmi was founded in 2006 as a not-for profit initiative by Mr. Ramesh Ramanathan and is amongst the largest MFIs in the country. Janalakshmi became an NBFC in 2008 and was amongst the first NBFCs to be awarded the NBFC-MFI classification in September 2013. Janalakshmi is one of the 10 recipients of the Small Finance Bank License (“SFB”) awarded by the Reserve Bank of India in mid-September 2015. IFC’s proposed investment will help the company expand the outreach of access to low income borrowers who have little or no access to formal sources of financing.

Investment Description
  • International Finance Corporation (IFC)

J Janalakshmi was incorporated in July 2006 and took over micro finance business from Jana Urban Foundation (then known as Janalakhmi Social Service) with effect from April 1, 2008 on receipt of NBFC license from the RBI. Promoter of Janalakshmi, Mr. Ramesh Ramanathan, is a former Managing Director & European Head of Corporate Derivatives of Citibank and holds a post graduate degree from BITS, Pilani and a MBA from Yale. He is a member of the Planning Commission of India’s committee on identification of urban below the poverty line families, and a member of the Government of India’s expert committee on urban infrastructure finance. He has also been included as a member of the RBI’s financial inclusion committee.

Apart from the Jana Urban Foundation (sponsor entity), other key shareholders include TPG Capital, Citigroup Venture Capital, North Haven Pvt. Equity Asia Platinum Pte Ltd., Alpha TC Hoding Pte Ltd., Treeline, India Financial Inclusion Fund, TRG, and Havells enterprise.

Private Actors

Jana Small Finance Bank (Janalakshmi Financial Services Limited)  is a leading, urban focused microfinance institution headquartered in Bangalore, Karnataka with a borrower base of more than 4.6 million borrowers and a loan portfolio of approximately INR91 billion (US$1,380 million equivalent) as of March 2016.

Janalakshmi was incorporated in July 2006 and took over micro finance business from Jana Urban Foundation (then known as Janalakhmi Social Service) with effect from April 1, 2008 on receipt of NBFC license from the RBI. Promoter of Janalakshmi, Mr. Ramesh Ramanathan, is a former Managing Director & European Head of Corporate Derivatives of Citibank and holds a post graduate degree from BITS, Pilani and a MBA from Yale.

Contact Information

Project Contact: Mr. Jayasheel Bhansali
Janalakshmi Financial Services Private Limited
Office Address: Rajashree Saroja Plaza, No 34/1, Andree Road, Shanthinagar, Bangalore, Karnataka, India – 560027

Email Address:jayasheel.bhansali@janalakshmi.com
Website: http://www.janalakshmi.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/