India: Debt Financing to Janalakshmi Financial Services Private Limited

Nonsovereign Project | 50163-001

Senior debt facility of up to $150 million (in Indian rupee equivalent) to Janalakshmi Financial Services Private. Limited (JFS)

Project Details

  • Project Officer
    Bracey, Pamela
    Private Sector Operations Department
    Request for information
  • Approval Date
    30 June 2016
  • Country
  • Sector
    • Finance
Project Name Debt Financing to Janalakshmi Financial Services Private Limited
Project Number 50163-001
Country India
Location Nation-wide
Type or Modality of Assistance
7481 Debt Security Ordinary capital resources USD 150.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Bracey, Pamela
Project Sponsor(s)
Description Senior debt facility of up to $150 million (in Indian rupee equivalent) to Janalakshmi Financial Services Private. Limited (JFS)
Objectives and Scope JFS will use the proceeds of the Asian Development Bank (ADB) loan to finance microfinance loans, predominately loans to women customers under the joint liability group (JLG) model, as well as other small loans to individuals and micro and small enterprises. Up to 5% of the ADB loan will be specifically dedicated to loans for building and improving sanitation facilities (e.g., toilets and septic tanks) throughout India.
Status of Development Objectives The main goals of the facility include increased capacity for microfinance lending and sanitation loans in India.
Status of Operation/Construction JFS has converted its operations from an NBFC-MFI to Jana Small Finance Bank with effect from 28 March 2018. Full commercial launch as a retail deposit taking bank was on 18 July 2018.
Linkage to Country/Regional Strategy The Midterm Review of Strategy 2020 emphasizes ADB's support to the financial sector by helping to develop financial infrastructure, institutions, and products and services. The proposed transaction contributes to financial sector development by supporting the growth of an SFB, an important component of the financial sector in India. The Midterm Review of Strategy 2020 also seeks to promote inclusive growth. Without access to formal financial services, lower income people or underserved segments will be excluded from the growth process and its benefits. According to the India country partnership strategy, 2013 2017, ADB's nonsovereign operations will continue to support the infrastructure and financial sectors by undertaking selective projects for physical and social infrastructure and financial infrastructure. The proposed transaction will support the development of microfinance in India, one of the financial infrastructures identified in the country partnership strategy and a high priority for the government.
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental and social performance of approved investment deals will need to be monitored by JFS. Periodic site visits, depending on the level of investment E&S risks, will need to be conducted. JFS at the end of the year will consolidate and report the E&S compliance of all approved investments to ADB. The effectivity of its ESMS will also be evaluated and reported as part of the annual report to ADB
Involuntary Resettlement None because of the small nature of investments involved. The environmental and social management system (ESMS) will provide guidance on due diligence and corrective actions in the unlikely event of any involuntary resettlement impacts.
Indigenous Peoples No adverse impacts because of the small nature of investments involved.
Stakeholder Communication, Participation, and Consultation NBFC-MFIs and banks follow a well-established participatory approach in forming groups and holding regularly scheduled, structured group meetings. This is adequately reflected in JFS's product policy papers for JLGs.
Timetable for assistance design, processing and implementation
Concept Clearance 29 Mar 2016
Credit Committee Meeting 23 May 2016
Approval 30 Jun 2016
Last PDS Update 12 Jun 2019

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