36838 - Au Fin Debt

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

36838

Company Name

AU SMALL FINANCE BANK LIMITED

Date SPI Disclosed

Sep 1, 2016

Country

India

Region

South Asia

Projected Board Date

Oct 31, 2016

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Feb 9, 2022

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Nov 23, 2016
Signed : Dec 20, 2016
Invested : Jan 5, 2017

Sector

Other Non-Banking Financial Institution (NBFI)

Project Description

Au FINANCIERS (INDIA) LIMITED (Au or the Company) is a regional non-banking finance company (NBFC), operating in the low income state of Rajasthan and other states such as Maharashtra, Gujarat, Madhya Pradesh, Punjab, Goa, Chhattisgarh, Delhi, Himachal Pradesh and Haryana. It primarily originates loans which are classified under priority sector and agriculture lending as per Reserve Bank of India (RBI) guidelines. These loans are targeted at segments that find it challenging to access bank financing.

Au originates vehicle loans, small business loans against collateral mainly in semi-urban and rural areas. Au offers MSME loan with a ticket size of INR0.2-5.0 million and tenor of 5-10 years, for income generating activities of micro and small manufacturers and service enterprises, and agriculture based SMEs. The clientele include truck/ tractor body manufacturer, auto ancillary units, brick making units, carpenters, general provision stores, fabrication units, schools and other educational institutions, etc.

The Reserve Bank of India (RBI) on 16th September, 2015 granted ‘in principle’ approval to Au to set up as a Small Finance Bank (SFB) aimed at overall Financial inclusion in the country by channeling credit to unreached, small marginal farmers and small business units in Rural India.

The proposed investment is consistent with the World Bank Group’s India Country Partnership Strategy (CPS) as it aligns with the engagement areas of (i) Inclusion – by enhancing private investment in the low income states (ii) Transformation – through job creation by supporting the labor intensive MSME segment and (iii) Integration – giving increased access to financial services in Tier II and Tier III cities

Associated Advisory Engagement

None at the moment.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

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
Straight Senior Loan	Loans to SME Borrowers

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

Development Impact

1. Demonstration effect: The project would demonstrate IFC''s continued support to an NBFC / SFB focused towards serving an underserved market and targeting underserved customers in the low income states.

2. Job creation: The MSME and CV industry is one of the largest employers of labour in India. The potential of growth in these industries will spur the production in the country with positive impacts on employment and growth.

3. Frontier Market Development: Au is among the largest NBFCs operating in Rajasthan and catering to the underserved segments of the population. IFC''s support would help in scaling-up operations of Au in semi-urban and rural areas of Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Punjab, Goa, Himachal Pradesh and Haryana.

1. Long term partner: The project would demonstrate IFC''s continued support to an NBFC focused towards serving an underserved market and targeting customers at the base of pyramid in the low and middle income states.

2. Stamp of approval: IFC''s debt support to Au will help the Company attract other FIIs as takers of its corporate debt.

3. Supporting Transformation: IFC''s support will help the existing clients to mobilize substantially longer tenor loans than those available to them from traditional wholesale sources. This will strengthen their financial position as they may not able to raise bank funding during the transformation phase. A strong balance sheet position to begin with will be beneficial for the small banks to garner retail deposits and other funds.

E&S Category Rationale / Risks and Mitigation

Task Title & Description	Actual Due Date	Status	Comments	Completion Date
Other1 others	08/24/2016	Completed	not required	08/24/2016

Contacts

For Inquiries About the Project, Contact

Mr. Deepak Jain,
Chief Financial Officer
Au Financiers (India) Ltd.
19-A Dhuleshwar Garden
Ajmer Road
Jaipur 302 001
Telephone : (+91)(0141) 391 0000
Fax : (+91)(0141) 236 8815
Email : mailto:deepak.jain@aufin.in

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
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.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer