DCM MMFSL NCD (IFC-38977)

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 & Mahindra 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)
$ 100.00 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)
$ 100.00 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)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 3, 2018

Disclosed by Bank May 14, 2017


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Project Description

According to IFC website, the project comprises an investment in non-convertible debentures to be issued by Mahindra & Mahindra Financial Services Limited. The proceeds of the IFC investment will support lending by the Company to the agricultural sector and will be on lent to finance agricultural equipment, mainly tractors and a range of utility and commercial vehicles. The facility will primarily benefit borrowers in rural and semi urban locations across in India and largely in Lower Income states. The project has the following development impact: 

 

1. Access to finance: The project will increase access to finance for the underserved farmers and Agro related SMEs in rural and semi- urban areas and contribute to the economic empowerment of households.

 

2. Job creation: Providing asset finance to Agro related small & micro business will enable them expand their operations and create more employment opportunities.

 

3. Support Agricultural mechanization: Availability of tractors and other farm equipment will support agricultural mechanization and improved farm productivity and efficiency and boost production.

 

 

Investment Description
  • International Finance Corporation (IFC)
Private Actors

MMFSL, a Systemically Important Deposit Accepting Non-Banking Financial Company registered with the Reserve Bank of Indiais a leading financer of vehicles (primarily, tractors, utility vehicles and cars) in India and is primarily focused on rural & semi-urban areas of India. MMFSL is a publicly listed subsidiary of Mahindra and Mahindra Limited (“M&M”), India’s largest tractor and utility vehicle manufacturer. Mahindra and Mahindra Limited holds 51.2% shareholding in MMFSL. The Company has financed over 4.7 million customers and has an AUM of over USD 6 billion as at 31st March 2017.

Contact Information

Project Contact: Vishal Agarwal, Senior Manager – Treasury & Investor Relations

Mahindra & Mahindra Financial Services Limited

Contact 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/