Small Finance Bank RGVN (IFC-39454)

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
Active
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
May 22, 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
RGVN (North East) Microfinance 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)
$ 15.08 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 1, 2018

Disclosed by Bank Mar 29, 2017


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Project Description

The proposed project envisages a debt investment in RGVN (NE) Microfinance Limited (“RGVN” or the “Company”) which is a MFI headquartered in Guwahati, Assam. RGVN has an asset under management (“AUM”) of INR6.1bn (US$89mn) across 6 north-eastern states and West Bengal has 133 branches and an outreach of 300,000 women clients. RGVN is focused mainly on the north eastern region of India.

RGVN is one of the 10 recipients of the Small Finance Bank License (“SFB”) awarded by the Reserve Bank of India in mid-September 2015.The proposed investment would provide long term liquidity support to RGVN while it starts building its retail savings base post transformation and would help it to continue its efforts towards financial inclusion. The proceeds of the loan would be utilized to extend microfinance and microenterprise loans in the northeastern states of India.

 

Investment Description
  • International Finance Corporation (IFC)

Microfinance was initiated in Northeast India through Rashtriya GraminVikas Nidhi – Credit & Savings Programme (RGVN-CSP) with revolving fund assistance from SIDBI in 1995 and RGVN (NE) MFI was incorporated as a public limited company in 2008, registering as a non-banking finance company with the Reserve Bank of India in 2010.

Currently the largest shareholder is Dia Vikas Capital (19.36%), the Indian arm of an Australian impact investing firm, followed by NMI (15.59%), a Norwegian microfinance fund and Oiko Credit (12.89%), a Dutch investment firm. The Company has recently raised fresh capital from new investors which include SIDBI Trustee Company Ltd (14.40%), RNT Associates Pvt Ltd (10.2%), Ratan Tata’s investment and Pi Ventures LLC (7.20%) ahead of its transformation into a SFB. Other investors include SIDBI (8.4%), NEDFi (5.04%) and ESOP Trust (1.68%).

IFC proposes to invest up to US$20 million (approximately INR 1,300 million equivalents) in RGVN in form of a senior debt investment.

Private Actors

RGVN (NE) Microfinance Limited is an MFI headquartered in Guwahati, Assam. RGVN has an asset under management (“AUM”) of INR6.1bn (US$89mn) across 6 north-eastern states and West Bengal has 133 branches and an outreach of 300,000 women clients. RGVN is focused mainly on the north eastern region of India.

 RGVN is one of the 10 recipients of the Small Finance Bank License (“SFB”) awarded by the Reserve Bank of India in mid-September 2015.The proposed investment would provide long term liquidity support to RGVN while it starts building its retail savings base post transformation and would help it to continue its efforts towards financial inclusion. The proceeds of the loan would be utilized to extend microfinance and microenterprise loans in the northeastern states of India.

Contact Information

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