DCM ABFL Green Bond (IFC-40557)

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
Proposed
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
Apr 16, 2018
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
Aditya Birla 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.
Loan Amount (USD)
$ 2.36 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 150
Converted using 2018-01-26 exchange rate.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 29, 2019

Disclosed by Bank Jan 16, 2018


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Project Description

The proposed IFC investment involves supporting the renewable energy lending program of Aditya Birla Finance Limited, a Systemically Important Non-Deposit Accepting Non-Banking Finance Company (NBFC) in India through an INR ECB loan or subscription to NCDs, or green bonds, issued by the Company. The INR ECB loan will be issued under Track III of RBI’s ECB guidelines. While the NCD issuance shall comply with SEBI (Indian regulator of the securities market) guidelines for green bonds. The proceeds of the issuance shall be on-lent by ABFL to solar projects in select states of India.

People Affected By This Project

GHG Savings: The proposed investment will result in savings in GHG emissions of up to 120,104 tCO2 p.a. as it will finance power generation through renewable and climate friendly sources. This is critical in the view of the GOI's overall intentions to reduce carbon intensity of the economy.

Integration: IFC's engagement with ABFL will support the latter's commitment to the renewable energy sector sending a positive signal to the market, and is likely to attract other local and international financial institutions to increase their investment in this sector. Additionally, IFC's continued investment in Green Finance will help to popularize this relatively new asset class, and attract niche investors.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

ABFL is a 100% subsidiary of Aditya Birla Capital Limited (ABCL), which is the holding company for all financial services businesses of Aditya Birla Group (ABG). 

 

In 2017, ABG undertook a restructuring exercise which involved merger of group companies Aditya Birla Nuvo (parent of ABCL) and Grasim and subsequent demerger and listing of ABCL. The exercise has now been completed and ABCL got listed on September 1, 2017. Grasim holds 56% in ABCL, Promoters hold 17% and balance is held by public shareholders.

Contact Information

PROJECT CONTACTS

Aditya Birla Finance Limited 
Mr. Arnab Basu 
Business Head, Projects & Structured Finance Group 
One Indiabulls Centre, Tower 1, 16th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013 

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/