53462 - SIDBI Loan

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Summary of Investment Information

Project Number

53462

Company Name

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

Date SPI Disclosed

Sep 8, 2026

Country

India

Region

South Asia

Projected Board Date

Jul 23, 2026

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Sep 9, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Jul 23, 2026
Signed : Jul 30, 2026
Invested : Sep 3, 2026

Sector

Finance Companies

Project Description

The proposed investment comprises a IFC own-account US$ denominated, senior, unsecured loan facility of up to US$500 million, with a tenor of up to seven years, to Small Industries Development Bank of India (SIDBI) (the Project). IFC’s debt proceeds will be utilized by SIDBI for directly lending to MSMEs and for MSME refinance facilities to financial institutions (FIs).

Associated Advisory Engagement

Alongside the proposed investment, IFC is engaging with SIDBI to further strengthen its MSME offerings through advisory support spanning three areas: (i) strengthening SIDBI’s capacity to create champion MSMEs by delivering workshops aimed at enhancing the capacity and competitiveness of MSMEs; (ii) supporting SIDBI in scaling up its ‘Prayaas’ portfolio, which targets women-led micro-enterprises, through the development of an early warning signal (EWS) collections scorecard to manage portfolio delinquency, and the facilitation of strategic lending partnerships; and (iii) building the capacity of SIDBI’s non-banking financial services (NBFC) partners, with a focus on low-rated or unrated NBFCs within its network, through analytical tools and workshops, to improve their long-term sustainability and competitiveness.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	500.0
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	Loans to MSME (mix of Micro and SME)

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

Development Impact

Improved access to finance for MSMEs: The Project will support SIDBI in growing its loans to MSMEs through both direct lending to MSMEs as well as through refinance facilities to FIs. India’s MSMEs are critical to the country’s economy, however access to finance to this segment remains constrained. IFC anticipates that this investment will improve access to finance for underserved MSMEs. Competitiveness: Beyond the project-level outcomes, IFC’s anticipates that this investment will promote greater competitiveness via demonstration and replication channels, by showcasing the potential and viability of scaling up MSME financing.

IFC will provide both financial and non-financial additionality through this project. Financial additionality is in the form of: (i) financing structure, via long-tenor financing; and (ii) resource mobilization, by mobilizing additional private capital from international institutional investors including through credit insurance. Non-financial additionality is via knowledge sharing and capacity building, as IFC will support SIDBI in further strengthening its MSME offerings through Advisory services spanning three areas: (a) strengthening SIDBI's capacity to develop champion MSMEs across priority sectors; (b) scaling up its 'Prayaas' portfolio targeting women-led micro-enterprises; and (c) building the capacity of its NBFC partners to improve their long-term sustainability and competitiveness.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Value of Outstanding Loans, MSMEs	$		Not Available	Not Available	Not Available
Value of Outstanding Loans, MSMEs : (target group)	$	Indirect lending to FIs	Not Available	Not Available	Not Available
Board Composition - Total (#)	number		Not Available	Not Available	Not Available
Board Composition - Women (#)	individuals		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

SIDBI provide refinance facilities to banks (including commercial banks, small finance banks, regional rural banks, co-operative banks and foreign banks operating in India) and non-bank financial companies (NBFC). SIDBI also provides funding to microfinance institutions for onlending to microenterprise segment. A relatively smaller portfolio comprises the direct lending by SIDBI to the micro, small and medium enterprises (MSME). The SIDBI direct lending MSME segment comprises loans for project finance, other term loans, working capital finance, and machinery finance. E&S risks associated with business activities of MSME are considered low-medium with occasional higher risk exposures. These MSMEs represent various industry sectors, viz, metal products, machinery, food and beverages, chemicals, pharmaceuticals, textiles, rubber, plastic, auto components etc. Most of these MSME sectors pose limited E&S risks and impacts which can be identified and mitigants designed in line with applicable laws and good industry practices. The typical E&S risks include labor and working conditions, supply chain risk related to labor, gender-based violence and harassment, and biodiversity (e.g., in the agribusiness segment), air emissions, waste management, and handling of hazardous materials, in the MSME borrower’s operations. IFC’s investment proceeds will be utilized by SIDBI for direct lending to MSMEs as well as to provide refinance facilities to other FIs for loans to micro and small enterprises (MSE). Loan proceeds will not support MSMEs involved in any activities on the IFC Exclusion List, or higher risk business activities that may involve involuntary resettlement, risk of adverse impacts on indigenous peoples, significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, risk of retrenchment, or significant occupational health and safety risks. Further, any coal related activities, or any financial institution other than low-medium risk will also be ineligible. Hence, the overall environmental and social (E&S) risk of the proposed investment is considered medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. The applicable performance requirements will be i) the IFC- FI Exclusion List; and ii) the relevant national E&S laws and regulations as applicable to the MSMEs.

SIDBI has an ESMS (https://www.sidbi.in/assets/front/pdf/ESMS-FMAP-E.pdf ) that is publicly disclosed. The ESMS includes an E&S due diligence (ESDD) checklist. As part of the Project, SIDBI will adjust its ESMS and ESDD checklist in consultation with IFC and apply it to the IFC Loan proceeds. SIDBI has appointed an E&S officer to ensure the required due diligence, monitoring, and supervision is conducted. SIDBI’s Human Resources (HR) policies are largely aligned with applicable laws and IFC Performance Standard 2 requirements. SIDBI has established HR policies governed by its Staff Regulations of 2001, amended from time to time (subordinate regulations- https://www.sidbi.in/subordinate-legislations ), and these are aligned with applicable law and cover recruitment, leave, non-discrimination and equal opportunity, internal grievance mechanisms, and a policy on POSH. IFC will supervise the E&S performance of the Project through a review of the annual E&S performance reports and site supervision visits at the Bank level.

S.no	Title	Anticipated Completion Date
1	Update ESMS	02/01/2027

Contacts

For Inquiries About the Project, Contact

Small Industries Development Bank of India
G Subramanian
General Manager

subramanian@sidbi.in
Swavalamban Bhavan, G-Block, Bandra- Kurla Complex, Bandra East
www.sidbi.in

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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.

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.

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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.

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