PROJECT

Projects

Summary of Investment Information

Project Number

48310

Company Name

THE FEDERAL BANK LIMITED

Date SPI Disclosed

Jul 18, 2023

Country

India

Region

South Asia

Projected Board Date

Jul 17, 2023

Environmental Category

FI-1 - Significant

Status

Active

Last Updated Date

Oct 13, 2023

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Jul 17, 2023
Signed : Jul 21, 2023
Invested : Oct 6, 2023

Sector

Primary Mortgage Institutions

Project Description

 The proposed project comprises a primary equity investment in Federal Bank Limited (“FBL” or the “Bank”), the seventh largest private sector bank in India, for up to INR9.84 billion (approximately US$120 million equivalent), by International Finance Corporation (IFC), IFC Financial Institutions Growth Fund, LP (FIG), and IFC Emerging Asia Fund, LP (EAF). The primary equity will strengthen the Bank’s Tier 1 capital adequacy ratio, which will allow it to accelerate its lending, including to MSMEs and for climate finance. The investment will support the Bank’s commitment to financial inclusion and support it operationalize its strong commitment to sustainability and climate finance. The proposed transaction is subject to all required approvals.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation