According to the bank documents, the proposed investment consists of loan provided to Coöperatieve Rabobank U. A, Mumbai Branch (“CRUA MB” or the “Branch”), the sole Indian Branch of the Netherlands-based Coöperatieve Rabobank U. A (“Rabobank” or the “Bank”). The project will support new financing to climate smart agriculture (animal productivity, efficient irrigation, prevention of post-harvest losses etc.,) and renewable energy (primarily solar power projects) of CRUA MB and contribute to bridging the unmet market needs for financing climate mitigation activities such as CSA and RE in the country.
The use of proceeds will be required to exclude higher risk activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or d) significant occupational health and safety risks. Hence, the E&S risk of the proposed project is medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability.
The applicable performance requirements will be i) the IFC- FI Exclusion List; ii) the relevant national E&S laws and regulations; and iii) the IFC Performance Standards. The project will not support any coal-related activities.
At the group level, Rabobank has an existing sustainability policy, which is applied globally and includes a comprehensive exclusion list and set of core policies on environment, labour standards and human rights; theme and sector policies on land, indigenous people, biodiversity, animal welfare, forestry, livestock farming, fisheries, palm oil etc., (collectively 'sustainability policies'). Rabobank is also signatory to the Equator Principles. Accordingly, all project finance transactions are evaluated by external E&S consultants hired by the sub-borrowers and further reviewed by external consultants hired by Rabobank where Equator Principles apply. Corporate finance transactions are required to follow the sustainability policies. Rabobank has sustainability department which is involved in review of project and corporate loans and is empowered to reject proposals which do not meet its internal policies. This existing E&S risk review process and structure include screening, project categorization, due-diligence including additional expert review if needed, monitoring of the portfolio and use of external consultants for project finance due-diligence.
The existing policy and procedures are aligned with the project's applicable performance E&S requirements and will be applied to the project as well. Rabobank also has an external communications mechanism to receive concerns related to projects financed by Rabobank. Rabobank HR policies and practices are generally in line with IFC PS-2 requirements. Relevant business staff at CRUA MB will be required to maintain the E&S review structure led by sustainability team at Rabobank group level that will allow to screen out higher risk transactions, and provide annual E&S report related to the portfolio supported by this IFC project.
The risks and impacts will be related to site specific occupational health & safety, emergency response, waste-water discharge and air emissions, labour and community issues and potentially land and biodiversity impacts depending on the nature and location of the project
The proposed investment consists of a bullet A Loan of up to US$50 million with a tenor of up to 5 years to CRUA MB.
Rabobank is a Dutch cooperative bank with a leading position in the domestic retail banking (in The Netherlands) and in the food and agribusiness markets worldwide. Coöperatieve Rabobank U. A, Mumbai Branch or CRUA MB deals with international wholesale banking activities with Indian clients as well as Dutch clients operating in India. The Branch provides the entire spectrum of fund and fee-based products services in India, focusing primarily on the Food and Agriculture and Renewable Energy sectors, drawing on its local resources as well as Rabobank's global network.
Coöperatieve Rabobank U. A, Mumbai Branch
Head of Treasury
+91 22 2481 7800
20F, Tower A, Penninsula Business Park, Lower Parel, Mumbai 400013, Maharashtra, India.
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