Fed Bank Loan (IFC-38848)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Gift City, Gujarat
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Active
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 26, 2017
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
Federal Bank 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.
Ring Fence
  • No Restrictions
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
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 Aug 1, 2018

Disclosed by Bank Apr 11, 2017

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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.

The project comprises of a Senior Loan of $100m to Federal Bank Limited (“FBL”), an existing IFC client. The proposed loan will provide long term funding to the FBL’s International Financial Services Center Branch in Gift City, Gujarat.

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

Federal Bank Ltd is a private sector bank in India, which was established in 1931 as Travancore Federal Bank and re-named as FBL in 1945. The Bank has a dominant presence in the state of Kerala and has a strong franchise amongst non-resident Indians (NRIs). Federal Bank has a network of 1,252 branches and 1,665 ATM's spread across 29 states and union territories in India. FBL's shares are listed in the National Stock Exchange (NSE), Bombay Stock Exchange Ltd (BSE), London Stock Exchange plc (LSE).

The major shareholders of the Bank as on 31 December 2016, are Franklin Templeton Investment Funds (3.14%), Amansa Holdings Private Limited (4.37%), HDFC Trustee Co. Ltd (4.23%), Reliance Capital Trustee Co. Ltd (4.19%), Mr Yusuffali Musaliam Veettil Abdul Kader (3.73%), Birla Sunlife Trustee Company Private Limited (3.35%), East Bridge Capital Master Fund Limited (2.86%), LIC of India (2.39%), Franklin Templeton Mutual Fund (2.38%),Government Pension Fund Global (2.49%) and Mr Rakesh Jhunhunwala (2.34%).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship
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.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

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.

Federal Bank Ltd is a private sector bank in India, which was established in 1931 as Travancore Federal Bank and re-named as FBL in 1945. The Bank has a dominant presence in the state of Kerala and has a strong franchise amongst non-resident Indians (NRIs). Federal Bank has a network of 1,252 branches and 1,665 ATM's spread across 29 states and union territories in India. FBL's shares are listed in the National Stock Exchange (NSE), Bombay Stock Exchange Ltd (BSE), London Stock Exchange plc (LSE).

The major shareholders of the Bank as on 31 December 2016, are Franklin Templeton Investment Funds (3.14%), Amansa Holdings Private Limited (4.37%), HDFC Trustee Co. Ltd (4.23%), Reliance CapitalTrustee Co. Ltd (4.19%), Mr Yusuffali Musaliam Veettil Abdul Kader (3.73%), Birla Sunlife Trustee CompanyPrivate Limited (3.35%), East Bridge Capital Master Fund Limited (2.86%), LIC of India (2.39%), Franklin Templeton Mutual Fund (2.38%),Government Pension Fund Global (2.49%) and Mr Rakesh Jhunhunwala(2.34%).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Aditya Birla Mgmt Corp Pvt Parent Company Industry and Trade owns Birla Carbon Client Industry and Trade
Federal Bank Investor Finance invests in Aditya Birla Mgmt Corp Pvt Parent Company Industry and Trade
Federal Bank Investor Finance invests in Bamnipal Steel Ltd Client Mining
Federal Bank Investor Finance invests in Bhushan Steel Ltd Client Mining
Federal Bank Investor Finance invests in Birla Carbon Client Industry and Trade
Federal Bank Investor Finance invests in Birla Corp Ltd Parent Company Construction
Federal Bank Investor Finance invests in Cairn India Ltd Client Mining
Federal Bank Investor Finance invests in Divyasree Tarbus Builders Parent Company Industry and Trade
Federal Bank Investor Finance invests in DLF Cyber City Developers Ltd Client Industry and Trade
Federal Bank Investor Finance invests in Fiat Chrysler Automobiles NV Parent Company Transport
Federal Bank Investor Finance invests in Fiat India Automobiles Ltd Client Transport
Federal Bank Investor Finance invests in Hindalco Industries Ltd Parent Company Mining
Federal Bank Investor Finance invests in Hindustan Powerprojects Pvt Parent Company Energy
Federal Bank Investor Finance invests in JSW Energy (Barmer) Ltd Parent Company Energy
Federal Bank Investor Finance invests in MB Power(Madhya Pradesh)Ltd Client Energy
Federal Bank Investor Finance invests in Novelis Inc Client Mining
Federal Bank Investor Finance invests in Okaya Energy Sys Pvt Ltd Parent Company Energy
Federal Bank Investor Finance invests in Onclave PTC Ltd Parent Company Mining
Federal Bank Investor Finance invests in Raj Westpower Ltd Parent Company Energy
Federal Bank Investor Finance invests in Rajdhani Invests & Agencies Parent Company Industry and Trade
Federal Bank Investor Finance invests in Ryhpez Holding (Sweden) AB Parent Company Transport
Federal Bank Investor Finance invests in Tata Sponge Iron Ltd Client Mining
Federal Bank Investor Finance invests in Tata Steel Ltd Parent Company Mining
Fiat Chrysler Automobiles NV Parent Company Transport owns Fiat India Automobiles Ltd Client Transport
Hindalco Industries Ltd Parent Company Mining owns Novelis Inc Client Mining
Hindustan Powerprojects Pvt Parent Company Energy owns MB Power(Madhya Pradesh)Ltd Client Energy
Onclave PTC Ltd Parent Company Mining owns Cairn India Ltd Client Mining
Rajdhani Invests & Agencies Parent Company Industry and Trade owns DLF Cyber City Developers Ltd Client Industry and Trade
Tata Steel Ltd Parent Company Mining owns Bamnipal Steel Ltd Client Mining
Tata Steel Ltd Parent Company Mining owns Bhushan Steel Ltd Client Mining
Tata Steel Ltd Parent Company Mining owns Tata Sponge Iron Ltd Client Mining

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.

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/

CONTACTS

The Federal Bank Ltd
Mr Ravi Ranjit
AGM - Head FI & Treasury Sales
+912226566605
raviranjit@federalbank.co.in
C-8, 1st Floor, Laxmi Towers, Bandra Kurla Complex, Mumbai 400051, India
www.federalbank.co.in

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How it works