India: Debt Financing to Janalakshmi Financial Services Private Limited
Senior debt facility of up to $150 million (in Indian rupee equivalent) to Janalakshmi Financial Services Private. Limited (JFS)
Private Sector Operations Department
Request for information
30 June 2016
|Project Name||Debt Financing to Janalakshmi Financial Services Private Limited|
|Borrower/Company||JANALAKSHMI FINANCIAL SERVICES PRIVATE LIMITED
|Type or Modality of Assistance||
|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|
|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.|
|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|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Debt Financing to Janalakshmi Financial Services Private Limited: Report and Recommendation of the President||Reports and Recommendations of the President||Apr 2018|
|Debt Financing to Janalakshmi Financial Services Private Limited: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jan 2017|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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Requests for information may also be directed to the InfoUnit.
India: Janalakshmi Financial ServicesAn ADB debt facility of up to $150 million (in Indian rupee equivalent) to Janalakshmi Financial Services will be used to finance microfinance loans to women customers and micro and small enterprises. Up to 5% of the loan will be for building and improving sanitation facilities throughout India.