Fullerton Loan (IFC-43960)

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
FI
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
Jun 29, 2020
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
Fullerton India Credit Company 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.
Investment Amount (USD)
$ 100.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 1, 2020

Disclosed by Bank May 28, 2020

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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.

According to the bank's website, "The proposed project comprised a senior secured debt funding of up to $100mn to Fullerton India Credit Company Ltd (“FICCL” or the “Company”). The purpose of the proposed IFC investment is to support the Company's lending program to micro, small and medium enterprises (“MSMEs”) in India, especially in Low-Income States (“LIS”), and also to women entrepreneurs. FICCL is a diversified MSME-focused non-banking finance company (“NBFC”) headquartered in Mumbai. It has 648 branches and is present in over 58,000 thousand villages in India. As of end December 2019, FICCL’s loan portfolio stood at INR247 billion (US$3.3 billion). Gross non-performing assets (“NPA”) stood at 2.6% and net NPA at 1.4%. The Company’s annualized return on assets and return on equity stood at 3.6% and 20.2% respectively for the first three quarters of FY20."

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.

Stakeholder Effects: The project is expected to contribute positively to job creation by improving access to finance for MSMEs in the low-income states of India. Further, IFC anticipates the project to support FICCL in increasing its lending to women owned MSMEs.

Market Impact: The implementation of the proposed project will support the continued flow of credit to the MSME sector. The financing provided to FICCL and similar MSME focused NBFCs is critical for the livelihood of the customers found in the MSME segment. FICCL will be primarily catering to the need of the additional first-time borrowers who entered the market and will be demonstrating the financial viability of serving the unserved segment, especially the entrepreneurs, including women, in the low-income states.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.

According to IFC, FICCL shareholding is as follows: Angelica Investments Pte Ltd (95.86%) and Fullerton Financial Holdings Pte Ltd (“FFH”) (4.14%). Angelica Investments is a wholly owned subsidiary of FFH. FFH is ultimately owned by Temasek Holdings Pte Ltd.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Angelica Investments Pte Ltd Investor -
- - - - Fullerton Financial Holdings Pte Ltd Investor -
- - - - Fullerton India Credit Company Limited Client -
- - - - Temasek Holdings Pte Ltd Parent Company -

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.

Fullerton India Credit Company Ltd
Mr. Arvind Sampath
Head - Treasury
+91 22-43215205
arvind.sampath@fullertonindia.com
Ground Floor, Tradepoint Building, Kamala Mills, Lower Parel, Mumbai – 400013
Website https://www.fullertonindia.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/

How it works

How it works