Fullerton Masala (IFC-39061)

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
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 15, 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
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.
Ring Fence
  • Small & Medium Enterprises
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)
$ 89.57 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.
Currency conversion note:
Bank reported INR 6.8 billion
Converted using 2017-04-20 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Apr 20, 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 proposed project involves the subscription by IFC to Masala Bond (Rupee Denominated)/ Non-Convertible Debentures issued by Fullerton India Credit Company Ltd. (“FICCL”, the “Company”)/ Fullerton India Home Finance Company Limited (“FIHFC”) for on-lending to micro, small and medium enterprise (“MSME”), sectors and business permitted under applicable laws/regulations.

Established in 2007, FICCL is a leading Non-Banking Finance Company registered with Reserve Bank of India. The Company has a strong focus on lending to rural and urban micro and small enterprises and also caters to mid-sized SMEs. FICCL also offers loans for affordable housing to salaried and self-employed individuals through it is fully owned subsidiary FIHFC.

As of Dec 31, 2016, FICCL has total assets under management of around US$ 1.88 billion and has reached out to more than 1.6 million customers through a widespread network of 528 branches spread across 22 states & 3 union territories, reaching out to 600 towns and 48,000 villages in the country.

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

FICCL is a fully owned subsidiary of Temasek, through its holding company Fullerton Financial Holdings (“FFH’). FFH has 9 operating entities, all in Banking and Financial Services, located across 8 countries in Asia. FFH focuses on the SME and mass market customer segments across Asia, which fits well with IFC's mission.

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.

Established in 2007, FICCL is a leading Non-Banking Finance Company registered with Reserve Bank of India. The Company has a strong focus on lending to rural and urban micro and small enterprises and also caters to mid-sized SMEs. FICCL also offers loans for affordable housing to salaried and self-employed individuals through it is fully owned subsidiary FIHFC. As of Dec 31, 2016, FICCL has total assets under management of around US$ 1.88 billion and has reached out to more than 1.6 million customers through a widespread network of 528 branches spread across 22 states & 3 union territories, reaching out to 600 towns and 48,000 villages in the country.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Archer Capital Pty Ltd Parent Company Industry and Trade owns Craveable Brands Ltd Client Industry and Trade
Temasek Investor Finance invests in Archer Capital Pty Ltd Parent Company Industry and Trade
Temasek Investor Finance invests in Craveable Brands Ltd Client Industry and Trade

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

Fullerton India Credit Company Ltd.
Mr. Arvind Sampath
Head- Treasury
91 22 6749 1234
arvind.sampath@fullertonindia.com
Floor 5&6, B Wing, Supreme Business Park, Powai, Mumbai -76
http://www.fullertonindia.com

How it works

How it works