This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
South Asia Growth Fund III (FMO-61774)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
A
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."
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 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.
Loan Amount (USD)
$ 30.00 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.
Other Related Projects
Primary Source

Original disclosure @ FMO website

Updated in EWS Feb 15, 2023

Disclosed by Bank Nov 11, 2022

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

WHO IS OUR PROSPECTIVE CLIENT?

South Asia Growth Fund III, L.P.("SAGF III"), a limited partnership registered in Canada is a USD 300 mln (target) private equity fund. The Fund's objective is to generate long term capital appreciation through equity and equity-linked investments in companies that seek growth and expansion opportunities addressing climate mitigation, adaptation and circular economy, with a focus on the middle market in India.

WHAT IS THE FUNDING OBJECTIVE?

SAGF III plans to make 8-10 minority investments in Indian companies that have a green / climate angle in their business. This includes renewable energy value chain, energy efficiency, resource/ efficiency, waste recovery and climate tech / digital solutions.

WHY DO WE WANT TO FUND THIS PROJECT?

SAGF III will invest in growth companies that are leading in their field in climate solutions in India. FMO has the intention to commit to SAGF III to increase our exposure to green investments in India and contribute to the Sustainable Development Goals 7 (Affordable and Clean Energy) and 8 (Decent Work and Economic Growth).

ENVIRONMENTAL AND SOCIAL RATIONALE

SAGF III is considered high-risk (A) E&S fund due to the gross risk exposure of certain investments in their pipeline most prominently relating to supply chain risks and health and safety at site. Based on the performance of previous funds, E&S management practices are considered mature and open to continual improvement. E&S and climate are an integral part of the investment process of the fund. The investment team (with support and guidance from the ESG Team) is responsible for identifying and addressing ESG concerns and opportunities in each investment. The SAGF III has a dedicated ESG team with a Head ESG, who will be responsible for facilitating and addressing such concerns/ issues and opportunities for every investment and another ESG manager for day-to-day support. The investment team works closely with the fund's ESG team/manager to identify a suitable technical consultant and design the scope of work. In conjunction with the Head ESG, the investment team will work with the company management to design action plans, which are incorporated in the legal documentation. The fund manager uses a two-pronged approach of preliminary E&S DD and a more detailed E&S DD afterwards considering no red flags identified before. The investment team will also work closely with the investee company to implement the necessary action plan and to support the company on any other E&S matters including capacity building, as needed. The fund manager has a strong E&S track record and is committed to being the best-in-class in their investments.

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

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.

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: disclosure@fmo.nl

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

How it works

How it works