fbpx 52138-001: Expanding Micro, Small, Medium-Sized Enterprise Lending Project | Asian Development Bank

India: Expanding Micro, Small, Medium-Sized Enterprise Lending Project

Nonsovereign (Private) Project | 52138-001 Status: Proposed

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 Details

Project Officer
Bracey, Pamela Private Sector Operations Department Request for information
Country
  • India
Sector
  • Finance
 
Project Name Expanding Micro, Small, Medium-Sized Enterprise Lending Project
Project Number 52138-001
Borrower/Company Fullerton India Credit Company Limited
Country India
Location Nation-wide
Type or Modality of Assistance
Debt Security Ordinary capital resources USD 150.00 million Approved
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
Project Sponsor(s)
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.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
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

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