According to the FMO, the proceeds from this facility will be used to support UGRO to grow its Green portfolio (70%) and (M)SME portfolio (30%), with on-lending towards females and/or female led (M)SMEs or youth entrepreneurs. The long-term nature of the facility will enable UGRO to offer sustained support to (M)SMEs, both directly and through strategic partnerships.
The project has been categorised as E&S Category B, in accordance with FMO's Sustainability Policy. In case of NBFC investments, the E&S classification is typically medium to low because the exposure generally is limited to retail and micro-entrepreneurs. No exposure to activities on FMO's exclusion list or IFC-PS triggered transactions. All transactions are screened in line with UGRO's exclusion list and in adherence to local law.
As stated by the FMO, UGRO Capital Limited is one of India’s leading Non-Bank Financial Companies, listed on the NSE and BSE, that is engaged in the business of lending and financing Micro, Small & Medium Enterprises. The company uses a data-driven approach to deliver timely and tailored credit solutions, thereby empowering (M)SMEs. With a focus on Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering, it serves more than 59,000 borrowers through a network of 104 branches across 15 states.
Financial Intermediary - UGRO Capital Limited:
ACCESS TO INFORMATION
As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: firstname.lastname@example.org
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism