AuHFL NCD (IFC-39725)

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 19, 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
AAVAS FINANCIERS 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)
$ 20.15 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)
$ 20.15 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 3, 2018

Disclosed by Bank May 8, 2017


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

Project Description

According to IFC website, IFC proposes to invest up to US$20 mn through subscription of Non-Convertible Debentures issued by Aavas Financiers Limited (AFL), formerly known as Au Housing Finance Limited. The proceeds of proposed IFC’s financing will be utilized by AFL for supporting affordable housing finance for purchase / construction & extension of house to individual under low and medium income group in Rajasthan (a low income state) and nearby 5 states. AFL’s customers include dairy farmers, carpenters, garment traders, artisans, etc. Currently, almost 65% of AFL’s customers are self-employed. 

1. Increased housing finance access in Low Income States: AFL is focused on providing access to housing finance to low-mid income borrowers in tier II /tier III/tier IV and peripheries of tier I cities, with 57% of its outstanding book in the low income states of Rajasthan and Madhya Pradesh. 

2. Increased housing finance access to self-employed and low income segment: AFL is focused on providing access to housing finance to low income borrowers, specifically those employed in the informal sector such as self-employed micro-entrepreneurs and un-organized sector salaried workers.

3. Job Creation: There is high demand for affordable housing, particularly in rural and semi-urban areas. The expansion of housing finance has a trickledown effect on job creation through the growth of the multiple industries

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Established in 2011, Aavas Financiers Limited (AFL) was incorporated as a wholly owned subsidiary of Au Financiers Ltd. (Au), currently known as Au Small Finance Bank Limited. As part of its Small Finance Bank transformation process, Au sold its substantial stake in AFL. The company’s current shareholders include Kedaara Capital, Partners Group, Au, and the management team.

The Company is led by Mr. Sushil Agarwal, CEO, who is a senior banker with over 15 years of experience in housing and SME finance.

Contact Information

Project Contact: Mr. Ghanshyam Rawat
CFO, Aavas Financiers Limited  
Contact No.: 0091-141-3910000
Email Address: ghanshyam.rawat@auhfin.in
Office Address: 201-202, 2nd Floor, Southend Square, Mansarovar Industrial Area, Jaipur - 302020, India
Website: http://www.auhfin.in/

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/