Altico Masala (IFC-40927)

Countries
  • India
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 20, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Altico Capital India Private Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 9, 2019

Disclosed by Bank Feb 20, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project involves providing senior secured debt up to US$50 million to Altico Capital India Limited (“Altico” or the “Company). The proceeds of the funding will be used to finance affordable housing projects as per the Pradhan Mantri Awas Yojna.

Altico is a non-deposit accepting non-bank financing company(NBFC). Altico primarily focuses on senior secured lending to affordable/mid-income and other residential projects and Commercial Real Estate in India. It currently operates in 7 major locations in the country As of December’17 the Company’s total asset size is ~US$705 mn

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Support to the affordable housing market: India has a significantly large gap in the affordable housing market. While the demand is huge (estimated at about 11 million units in urban areas), the supply of stock is exceedingly low. The problem could severely hamper the realization of the GOI's goal of "Housing for All" by 2022. The project will increase access to affordable housing. It will help in filling the gap of affordable housing units by financing affordable housing developers and helping in increasing the supply of affordable housing units. The Project is expected to generate 1200 units.

Job Creation: Real Estate and construction is one of the largest job creators in India. India is estimated to need around 76.5 million workers in the building, construction and real estate sector by 2022, with affordable housing itself expected to need 38 million work force by 2030 from 29 million at present. In addition, there are at least 250 ancillary industries that shall further expand job creation. This project by providing direct stimulus to affordable housing construction, is expected to generate very positive impacts on employment and growth.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a 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 Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Altico is a systemically important non-deposit accepting non-bank financing company (NBFC). Altico primarily focuses on senior secured lending to affordable/mid-income and other residential projects and Commercial Real Estate in India. It currently operates in 7 major locations in the country As of December’17 the Company’s total asset size is ~US$705 mn. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Mr. Dhruv Jain 
Chief Financial Officer, Altico Capital India Limited 
Telephone No.: +91-22-67154000 
Email Address: info@alticocap.com 
Office Address: 21, 2nd Floor, 5 North Avenue, Maker Maxity, Bandra Kurla Complex,Mumbai - 400 051 
Website: alticocap.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/

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How it works