DCM MRHFL NCD (IFC-38976)

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
Jun 13, 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
MAHINDRA RURAL HOUSING FINANCE 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)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 3, 2018

Disclosed by Bank May 12, 2017


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to IFC website, the project comprises an investment in non- convertible debentures to be issued by Mahindra Rural Housing Finance Limited. The proceeds of the IFC investment will be used to provide finance for affordable housing in rural and semi-urban areas of India. The project has the following development impacts:

1. Increased housing finance access to low income segment: The IFC investment will provide a reasonable amount of incremental funding to enable the Company to provide additional housing finance loans to low income households. Low income households are underserved by the larger financial institutions and IFC's investment will directly expand the availability of housing finance to this relatively excluded segment.

2. Job creation: The project will create demand for housing and thereby support the construction sector which is one of the largest employers in communities making the rural urban transition.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

MRHFL is a part of the Mahindra Group and was established as a subsidiary of Mahindra and Mahindra Financial Services Limited (“MMFSL”) in April 2007. MMFSL currently holds 87.5% stake in the Company and 12.5% is held by National Housing Bank. The Company provides loans for home construction, extension, purchase and improvement to a wide base of customers in rural and semi-urban India.

Contact Information

Project Contact: Vishal Agarwal
Senior Manager – Treasury & Investor Relations, Mahindra & Mahindra Financial Services Limited 
Telephone No.: +91-22-66526189
Email Address: agarwal.vishal@mahindra.com
Office Address: Mahindra Towers, 4th Floor, Dr. G. M. Bhosale Marg, Worli, Mumbai -400018, India
Website: www.mahindrafinance.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/