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.
Ring Fence
  • Climate
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
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
Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

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.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Aditya Birla Capital Limited Parent Company -
Aditya Birla Group Investor Finance invests in Achintya Solar Power Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Amber Entrps (India) Pvt Ltd Parent Company Construction
Aditya Birla Group Investor Finance invests in Axis Wind Farms (MPR DAM) Pvt Parent Company Energy
Aditya Birla Group Investor Finance invests in Barmer Lignite Mining Co Ltd Client Mining
Aditya Birla Group Investor Finance invests in Brookefields Res And Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in BSCPL Godhra Tollways Ltd Client Transport
Aditya Birla Group Investor Finance invests in BSCPL Infrastructure Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Cg Tollway Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Clean Wind Power (Devgarh) Client Energy
Aditya Birla Group Investor Finance invests in Emcure Pharmaceuticals Ltd Parent Company Education and Health
Aditya Birla Group Investor Finance invests in Energon Power Resources Pvt Parent Company Energy
Aditya Birla Group Investor Finance invests in Essel Group Parent Company Energy
Aditya Birla Group Investor Finance invests in Gayatrishakti Paper & Boards Parent Company Agriculture and Forestry
Aditya Birla Group Investor Finance invests in Grinibhrit Solar Power Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in GVK Power & Infrastructure Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Hamir Real Estate Pvt Ltd Client Industry and Trade
Aditya Birla Group Investor Finance invests in Hero Future Energies Pvt Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Hindupur Solar Parks Pvt Ltd Client Energy
Aditya Birla Group Investor Finance invests in Ideal Soft Tech Park Pvt Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in IDFC Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in IRB Hapur Moradabad Tollway Client Transport
Aditya Birla Group Investor Finance invests in Jindal Saw Ltd Parent Company Mining
Aditya Birla Group Investor Finance invests in JSW Infrastructure Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in JSW Jaigarh Port Ltd Client Transport
Aditya Birla Group Investor Finance invests in Kherani Paper Mills Pvt Ltd Parent Company Agriculture and Forestry
Aditya Birla Group Investor Finance invests in Ksh Infra Industrial Pk Pvt Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in Mahindra & Mahindra Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Mahindra Renewables Pvt Ltd Client Energy
Aditya Birla Group Investor Finance invests in Mbl (GSY) Road Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Mhaiskar Ventures Pvt Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Mumbai Intl Airport Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Mysore-Bellary Highway Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Navayuga Dhola Infra Projects Parent Company Construction
Aditya Birla Group Investor Finance invests in Navayuga Quazigund Expressway Parent Company Transport
Aditya Birla Group Investor Finance invests in Neuland Laboratories Ltd Parent Company Education and Health
Aditya Birla Group Investor Finance invests in NRSS XXIX Transmission Ltd Client Energy
Aditya Birla Group Investor Finance invests in NRSS XXXI (B) Transmission Ltd Client Energy
Aditya Birla Group Investor Finance invests in Okaya Energy Sys Pvt Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Phoenix Tech Zone Pvt Ltd Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in Prestige Hyderabad Ret Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in Provident Housing Ltd Client Industry and Trade
Aditya Birla Group Investor Finance invests in Puravankara Ltd Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in Rajasthan State Mines and Parent Company Mining
Aditya Birla Group Investor Finance invests in Sadbhav Engineering Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Sanghi Inds Ltd Parent Company Construction
Aditya Birla Group Investor Finance invests in Sterlite Grid 2 Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Sun-Gumberg India RE PCC Parent Company Industry and Trade
Aditya Birla Group Investor Finance invests in Suprasanna Solaire Energy Pvt Parent Company Energy
Aditya Birla Group Investor Finance invests in Suvarchas Solar Power Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in Tata Sons Pvt Ltd Parent Company Transport
Aditya Birla Group Investor Finance invests in Uchit Expressways Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Udaipur Tollway Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Vijay Grp Housing Pvt Ltd Parent Company Infrastructure
Aditya Birla Group Investor Finance invests in Vishvarupa Solar Power Ltd Parent Company Energy
Aditya Birla Group Investor Finance invests in VK1 Expressway Pvt Ltd Client Transport
Aditya Birla Group Investor Finance invests in Walwhan Solar Madhya Pradesh Parent Company Energy
Aditya Birla Group Investor Finance invests in Western MP Infrastructure Parent Company Transport
BSCPL Infrastructure Ltd Parent Company Transport owns BSCPL Godhra Tollways Ltd Client Transport
Essel Group Parent Company Energy owns NRSS XXXI (B) Transmission Ltd Client Energy
GVK Power & Infrastructure Ltd Parent Company Transport owns Mumbai Intl Airport Pvt Ltd Client Transport
Hero Future Energies Pvt Ltd Parent Company Energy owns Clean Wind Power (Devgarh) Client Energy
Ideal Soft Tech Park Pvt Ltd Parent Company Transport owns Cg Tollway Pvt Ltd Client Transport
Ideal Soft Tech Park Pvt Ltd Parent Company Transport owns Udaipur Tollway Pvt Ltd Client Transport
IDFC Ltd Parent Company Energy owns Hindupur Solar Parks Pvt Ltd Client Energy
JSW Infrastructure Ltd Parent Company Transport owns JSW Jaigarh Port Ltd Client Transport
Mahindra & Mahindra Ltd Parent Company Energy owns Mahindra Renewables Pvt Ltd Client Energy
Mhaiskar Ventures Pvt Ltd Parent Company Transport owns IRB Hapur Moradabad Tollway Client Transport
Mhaiskar Ventures Pvt Ltd Parent Company Transport owns VK1 Expressway Pvt Ltd Client Transport
Puravankara Ltd Parent Company Industry and Trade owns Provident Housing Ltd Client Industry and Trade
Rajasthan State Mines and Parent Company Mining owns Barmer Lignite Mining Co Ltd Client Mining
Sadbhav Engineering Ltd Parent Company Transport owns Mysore-Bellary Highway Pvt Ltd Client Transport
Sterlite Grid 2 Ltd Parent Company Energy owns NRSS XXIX Transmission Ltd Client Energy
Sun-Gumberg India RE PCC Parent Company Industry and Trade owns Hamir Real Estate Pvt Ltd Client Industry and Trade
Tata Sons Pvt Ltd Parent Company Transport owns Uchit Expressways Pvt Ltd Client Transport

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/