BajajFin II (IFC-42441)

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
Mar 28, 2019
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
Bajaj Finance Limited
The holder of the loan, grant, or other investment.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 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 Mar 11, 2019

Disclosed by Bank Feb 26, 2019


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Project Description

According to the bank website, "the proposed investment involves up to US$150 million (or equivalent in INR) debt investment in Bajaj Finance Limited (“BFL” or the “Company”). The proceeds will be used for on-lending to Small and Medium Enterprises (“SMEs”) in Low Income States. In addition, BFL will match IFC’s investment 3x by contributing up to US$450 million (or equivalent in INR) from its own balance sheet. BFL is a diversified NBFC registered under the Reserve Bank of India, operating across different business segments - Consumer (40%), Mortgage (28%), SME (13%), Commercial (11%), and Rural (8%). As of Dec 31, 2018, BFL has total assets under management of around US$ 15.56 billion and has reached out to more than 32.5 million customers through a widespread network branches and customer touch points."

Investment Description
  • International Finance Corporation (IFC)
Private Actors

According to IFC, BFL is part of the Bajaj Group, one of the largest corporate houses in India engaged in auto manufacturing and financial services. Bajaj Finserv Limited, the holding company for the financial services businesses of the Bajaj Group, owns 54.9% of BFL and also holds interests in life and general insurance. Bajaj Finserv reported a market cap of US$14.3 billion as on 25th Feb’19. 

Contact Information

Bajaj Finance Ltd
Mr. M. M. Muralidharan
Head- Treasury
+91 20 30186403
mm.muralidharan@bajajfinserv.in
4th Floor, Bajaj Finance Ltd, Viman Nagar, Pune, Maharashtra 411014
https://www.bajajfinserv.in/corporate-bajaj-finance 

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/