Senior secured debt financing of up to $150 million (in Indian rupee equivalent) to Fullerton India Credit Company Limited (FICC) for the Expanding Micro, Small, and Medium-Sized Enterprise Lending Project in India
|Project Name||Expanding Micro, Small, Medium-Sized Enterprise Lending Project|
|Borrower/Company||Fullerton India Credit Company Limited
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Finance / Small and medium enterprise finance and leasing
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Bracey, Pamela|
|Description||Senior secured debt financing of up to $150 million (in Indian rupee equivalent) to Fullerton India Credit Company Limited (FICC) for the Expanding Micro, Small, and Medium-Sized Enterprise Lending Project in India|
|Objectives and Scope||The debt financing will support the growth of FICC's financing portfolio for MSMEs, providing needed financial products and services to this underserved segment.|
|Linkage to Country/Regional Strategy||ADB''s long-term institutional framework, Strategy 2030, emphasizes ADB support for the financial sector by helping develop financial infrastructure, institutions, and products and services. The transaction will contribute to financial sector development by supporting the growth of an NBFI which is important to providing increased access to finance for MSMEs in India. According to ADB''s country partnership strategy, 2018 -2022 for India, ADB's nonsovereign operations will continue to support the three country partnership strategy strategic priorities in a crosscutting manner by catalyzing financial sector development. The transaction will support the development of the MSME sector in India, particularly in rural areas, as part of one of the strategy's three key pillars on inclusive growth in rural areas and low-income states, which is also a high government priority. The transaction is aligned with ADB''s Gender Equality and Women''s Empowerment Operational Plan, 2013 -2020.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The transaction's potential environmental and social impacts, associated risks of FICC''s existing and/or likely future portfolio, and its commitment to and capacity for environmental and social management have been assessed. FICC will update its existing ESS policy to align and comply with the requirements of the ADB Safeguard Policy Statement (2009). In accordance with ADB requirements, FICC will ensure information disclosure and consultation with affected people, as applicable.|
|Involuntary Resettlement||Sub-borrowers are not expected to use loans from FICC to acquire land that will result in physical or economic displacement because of land acquisition. The current and future portfolio of FICC is largely small ticket loans focused mainly on retail lending. It also provides loans for SMEs where land rights are already acquired through direct purchase agreement.|
|Indigenous Peoples||FICC''s business activities are not likely to result in impacts on indigenous people communities. ADB financing will not be used to fund any activity which will result in adverse impacts on indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||FICC ensures participation of different organizations through its CSR policy and corporate governance policy.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||10 Jul 2018|
|Credit Committee Meeting||24 Jun 2019|
|Approval||26 Jul 2019|
|Last PDS Update||26 Jul 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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Expanding Micro, Small, and Medium-sized Enterprise Lending Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||May 2019|
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.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.