CAGL ECB Loan (IFC-49120)

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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
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
Dec 24, 2024
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
CreditAccess Grameen Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
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 May 25, 2025

Disclosed by Bank Apr 24, 2025

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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 the Bank’s website, the proposed project envisages a senior debt investment in CreditAccess Grameen Limited (“CAGL”) of up to USD100 million with a tenor of up to 5 years. The proceeds of the IFC loan will be utilized towards expanding the Company’s portfolio to women microentrepreneurs for income generation purposes in India.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project involves 5-year senior loan of up to US$100 million to Credit Access Grameen Limited (CAGL or the Company) for expanding the Company’s microfinance (unsecured loan) portfolio to women borrowers for income generation purposes. The proceeds will support CAGL’s women-owned microenterprises portfolio with a focus on lending for microfinance loans for agriculture and its allied purposes. This presents limited to no E&S risks and impacts, and the project is categorized as Category FI-3. The main E&S risks and impacts of the project derive from CAGL’s lending and financing activities, its labor and working condition practices across the company and its capacity and procedures in place to manage these risks.

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

The proposed Project envisages a secured debt investment of up to US$100 million in CAGL.

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 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.

CreditAccess Grameen Limited - CAGL is the largest Non-banking Finance Company – Microfinance Institution (NBFC-MFI) in India with a 15.6% NBFC-MFI market share (in terms of gross loan portfolio) as of March 2024 and a 6.2% microfinance sector market share as of March 2024. Nearly 100% of CAGL’s portfolio is in rural areas supporting women engaged in the agri-allied and services related sectors. The Company is listed on the Bombay (Mumbai) Stock Exchange and the National Stock Exchange with a market capitalization of INR190.8 billion (US$2.3 billion) as of August 28, 2024. The Company’s sponsor is CreditAccess India (CAI) with 66.56% equity stake and the remaining stake of 33.34% is publicly owned.


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.

CreditAccess Grameen Limited
Nilesh Dalvi
Chief Financial Officer
+91 80 22637300
https://www.creditaccessgrameen.in

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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