RBL Debt I (IFC-41811)

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
B
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
May 31, 2019
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
RBL 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
  • 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)
$ 150.00 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 Sep 5, 2019

Disclosed by Bank Jul 9, 2019

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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.

According to bank documents, "the proposed project envisages a senior loan of US$150 million to RBL Bank (“RBL” or the “Bank”). The proceeds of the proposed project will be utilized in the following manner (i) US$100mn to support the expansion of RBL’s micro, small and medium enterprises (MSME) and individual business loans(<$100k) portfolio in the Low-Income States (LIS) of India and (ii) US$50mn earmarked to fund climate smart projects. RBL is a mid-sized old private sector bank in India that was established in 1943. It was granted the status of a scheduled commercial bank in 1959. It currently services over 5.82mn customers through a network of 288 Branches, 221 Banking Outlets and 390 ATMs spread across 19 Indian states and Union Territories."

The environmental and social risk of the proposed investment is medium, and the project is categorized as FI-2.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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 Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - RBL Bank Limited Buyer -
ACB(INDIA)LTD Parent Company Mining owns Spectrum Coal & Power Ltd Client Mining
CESC Ltd Parent Company Energy owns Dhariwal Infrastructure Ltd Client Energy
National Highways Authority of India Parent Company Transport owns Jodhpur Ring Road (74.6KM) Expansion PPP Client Transport
RBL Bank Investor Finance invests in ACB(INDIA)LTD Parent Company Mining
RBL Bank Investor Finance invests in CESC Ltd Parent Company Energy
RBL Bank Investor Finance invests in Dhariwal Infrastructure Ltd Client Energy
RBL Bank Investor Finance invests in Haldia Energy Ltd Parent Company Energy
RBL Bank Investor Finance invests in Jodhpur Ring Road (74.6KM) Expansion PPP Client Transport
RBL Bank Investor Finance invests in National Highways Authority of India Parent Company Transport
RBL Bank Investor Finance invests in Natsteel Asia (Singapore) Pte Client Mining
RBL Bank Investor Finance invests in Sadbhav Engineering Parent Company Transport
RBL Bank Investor Finance invests in Spectrum Coal & Power Ltd Client Mining
RBL Bank Investor Finance invests in Tata Steel Ltd Parent Company Mining
RBL Bank Investor Finance invests in Thriveni Earthmovers Pvt Ltd Parent Company Mining
Sadbhav Engineering Parent Company Transport owns Jodhpur Ring Road (74.6KM) Expansion PPP Client Transport
Tata Steel Ltd Parent Company Mining owns Natsteel Asia (Singapore) Pte 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.

RBL Bank
Jaideep Iyer
Head - Strategy
+91 22 4302 0842
Jaideep.Iyer@rblbank.com
One Indiabulls Centre, Tower 2B, 6th Floor, 841, Senapati Bapat Marg, Lower Parel, Mumbai – 400013

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/

How it works

How it works