31630 - Dakshin

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Summary of Investment Information

Project Number

31630

Company Name

Company Name Pending

Date SPI Disclosed

May 11, 2012

Country

India

Region

South Asia

Projected Board Date

Jun 14, 2012

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Oct 31, 2024

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Nov 1, 2012
Signed : Nov 5, 2012
Invested : Nov 6, 2012

Sector

Finance Companies

Project Description

This proposed project involves an investment in a listed non banking financial company in India.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	74.99
Equity	0.01

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Quasi-Equity	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

IFC will support the Company in developing best practice operational processes and standards to build a profitable franchise given the risks inherent in SME financing as well as the high transaction costs. IFC, with its global expertise in this area is best positioned to help the Company develop and improve tools and standards to target the SME segment, and build capabilities in the areas of credit appraisal, risk management, IT/MIS and design of appropriate delivery channels.

IFC will support the Company''s sustainable growth into specialized sectors such as affordable housing and also advise the Company on social and environmental, and corporate governance best practices.

E&S Category Rationale / Risks and Mitigation

The lending business of the Company is primarily limited to the SME sector and housing finance. The Company has exposure to private equity businesses. Overall, the existing and proposed lending portfolio present potentially limited adverse environmental or social risks or impacts that will be few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. In rare circumstances, it may also include a very limited number of business activities with potential significant adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented. Hence, the E&S risk of the proposed investment is medium and the project is categorised as FI-2. The applicable Performance requirements will be i) the IFC- FI Exclusion List; ii) The host country E&S laws and regulations; and iii) the IFC Performance Standards.

Main E&S risk and impacts of the project emanates from the SME exposure, housing portfolio and joint venture investment in health and education sector. These includes impacts like occupational health & safety concerns, fire and life safety, waste and pollution management and possibly land and biodiversity impacts depending on the nature and location of the project. At present REL does not have an E&S risk management system in place. REL was found to be in gross compliance with IFC's requirements of PS-2 on Labour and Working Conditions.Main E&S risk and impacts of the project emanates from the SME exposure, housing portfolio and joint venture investment in health and education sector. These includes impacts like occupational health & safety concerns, fire and life safety, waste and pollution management and possibly land and biodiversity impacts depending on the nature and location of the project. At present REL does not have an E&S risk management system in place. REL was found to be in gross compliance with IFC's requirements of PS-2 on Labour and Working Conditions.

Contacts

For Inquiries About the Project, Contact

Minakshi Seth
IFC South Asia
4th Floor Maruti Suzuki Building
Nelson Mandela Marg, Vasant Kunj
Delhi 110070
Telephone: 91 4111 1000

For Inquiries and Comments About IFC, Contact

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date	Status	Comments	Completion Date
Nominate officers		Completed	Completed	01/07/2013
Establish SEMS		Completed	Completed	03/07/2013

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