48676 - SBFC: SME Debt

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Summary of Investment Information

Project Number

48676

Company Name

SBFC FINANCE LIMITED

Date SPI Disclosed

Feb 25, 2026

Country

India

Region

South Asia

Projected Board Date

Dec 22, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 27, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Dec 22, 2025
Signed : Dec 24, 2025
Invested : Feb 24, 2026

Sector

Finance Companies

Project Description

The proposed project envisages an investment of up to US$50 million in SBFC Finance Limited (SBFC or the Company), an Indian Non-Banking Finance Company (“NBFC”) and a new client for IFC (the Project). IFC’s debt proceeds will be utilized by the Company for growing its loan book towards micro, small and medium-sized enterprises (MSME), including women MSMEs. A portion of IFC’s investment proceeds will also be utilized by the Company for financing the targeted borrower groups in the state of Uttar Pradesh.

Associated Advisory Engagement

IFC will conduct a responsible finance assessment for SBFC. The RF assessment is grounded in the best international practices and aims to bolster the existing policies and practices of the client, particularly in terms of their end customers. The RF assessment is designed to ensure good governance and to fortify existing risk management practices. The culmination of this assessment process will be providing actionable recommendations and conducting capacity building workshops (1 to 2). This includes inputs for monitoring key indicators related to responsible finance practices.

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 MSME (mix of Micro and SME)
Syndications	Others (only if UoP is not available)

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

Development Impact

Increased access to finance for MSMEs, including women borrowers: The proposed investment will increase access to finance for the underbanked and credit-starved MSMEs, including women borrowers, thereby enabling them to expand their business, generate income, and, thus, contribute to their economic empowerment. Competitiveness: IFC anticipates that the Project will promote greater competitiveness in the NBFC sector by encouraging NBFCs to grow their MSME portfolios, especially to underserved, harder-to-reach segments like WMSMEs in small towns and rural areas.

IFC will provide both financial and non-financial additionality through this Project. Financial Additionality will be provided by offering U.S. dollar-denominated financing of up to US$50 million with a tenor of up to four years, helping them diversify its funding base. With respect to non-financial additionality, IFC plans to engage with SBFC in the areas of Responsible Finance assessment to ensure good governance and support the strengthening existing risk management practices.

Indicator	Metrics	Comments
Board Composition - Total (#)	number
Board Composition - Women (#)	number
Direct Employment (#) Operations And Maintenance	individuals
Female Direct Employment (#) Operations And Maintenance	individuals
Number of Senior Management Positions	individuals
Number of Women In Senior Management	individuals

E&S Category Rationale / Risks and Mitigation

The project entails a senior secured loan of up to US$50 million to SBFC Finance Limited (“SBFC” or the “Company”) for lending to micro, small and medium-sized enterprises (MSMEs). SBFC’s MSME portfolio mainly comprises businesses in wholesale/retail trading, small scale manufacturing, and small and medium sized construction companies. These industry sectors in MSME segment present medium-low Environmental & Social (“E&S”) risks and impacts. The typical risks areas include labor and working conditions, gender-based violence and harassment, occupational health and safety, air emissions, waste management, and handling of hazardous materials in the MSME borrower’s operations and supply chain risk including child labor. The project will not support coal-related activities and higher risk business activities that may involve a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, (d) risk of retrenchment, or e) significant Occupational Health and Safety risks. Hence, the project is categorized as Category FI-2 in accordance with IFC’s Environmental and Social Sustainability Policy. For this investment, the E&S requirements will include the IFC Exclusion List and national E&S laws and regulations which will apply to the asset class supported by IFC.

The key risks are related to the ability of SBFC to identify and manage environmental and social risks associated with its lending activities to MSME clients. Additional E&S risks and impacts of SBFC derive from the capacity and systems in place to manage these risks. The HR Business Partner and Manager Risk are the E&S focal points of the company. SBFC has an ESG policy which at present focuses on its own business operations and does not consider the E&S risks associated with its financing activities, except for screening against an exclusion list. The Policy includes commitment to comply with the national E&S regulations. The Exclusion list in the ESG Policy is not comprehensive and is not aligned to IFC Exclusion List.

As part of the Project, SBFC will be required to develop an E&S management system that will include E&S procedures on (i) mechanism to screen out higher risk business activities, (ii) guidance on exclusion of business activities based on the IFC Exclusion list, (iii) mechanism for E&S due diligence and E&S performance monitoring against national E&S laws and regulations. The HR policies of SBFC are aligned with PS 2 on labor and working conditions and the company follows the applicable Life and Fire Safety requirements in its own operations.

S.no	Title	Anticipated Completion Date
1	Upgrade the ESG policy to an ESMS in line with IFC PS 1 requirements	01/15/2026

Contacts

For Inquiries About the Project, Contact

SBFC Finance Limited
Mr. Arup Bhattacharya
Chief Treasury Officer

arup.bhattacharya@sbfc.com
Andheri Kurla Road, Chakala, Andheri East,Mumbai – 400059, Maharashtra, India
https://www.sbfc.com/

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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.

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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.

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