28724 - AU Financiers

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 Proposed Investment

Project Number

28724

Company Name

AU SMALL FINANCE BANK LIMITED

Date SPI Disclosed

Nov 23, 2009

Country

India

Industry

Financial Markets

Projected Board Date

Dec 24, 2009

Status

Completed

Sector

Finance Companies

Date Revised SPI Disclosed

Nov 24, 2009

Department

Global Industry, Financial Markets

Environmental Category

Previous Events

Approved : Mar 18, 2010
Signed : Mar 24, 2010
Invested : Mar 31, 2010

Project Description

AU Financiers (India) Private Limited (AU or the Company) is a regional NBFC, operating in the low income state of Rajasthan. It primarily originates loans which are classified under priority sector and agriculture lending as per Reserve Bank of India (RBI) guidelines. These loans are primarily targeted at segments that find it challenging to access bank financing. AU originates vehicle loans, business loans against property and small loans to customers mainly in semi-urban and rural areas. AU finances loans through a combination of channel financing, securitization, bank finance and through its own funds. AU plans to increase its presence in Rajasthan by reaching further into semi-urban and rural segments and by geographically expanding to other states. The Company will fund its growth and expansion through a mix of equity capital, bank loans and securitization assignments.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	7.59

Development Impact

Financial inclusion is one of the three pillars of the IFC’s regional strategy (the other two being Climate Change and Regional Integration). An increased focus on investments targeted at the low-income population that find it challenging to access bank financing would enhance financial inclusion. This project, by addressing the financial services needs of underserved clients, forms an important tool for poverty reduction, private sector development and inclusive growth. The project is expected to provide access to finance for the low income, the self employed, the farmers and first-venture entrepreneurs, in the semi-urban and rural areas of Rajasthan, Gujarat and Maharashtra.

The equity capital raised by the Company will enable it to scale up its business and access a wider set of bank financing for its operations. The IFC support will thus improve the Company’s access to finance and reduce the Company’s reliance on a small number of banks for financing its growth. AU is a small regional NBFC and has ambitious growth plans. IFC intends to work with AU for strengthening its risk management systems (e.g., credit risk, Asset-Liability management, etc.). In addition to providing advisory services in risk management, IFC will assist the Company in knowledge sharing and imbibing best practices relating to structuring new products and widening business areas to include broking insurance and other financial services to its target segments.

This project involves IFC’s support and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. AU will be required to:

· Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the IFC exclusion list
· Identify qualified persons to manage and implement the procedure
· Demonstrate commitment and resources to implementing the procedure
· Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
· Submit a periodic report to IFC as per a format to be provided by IFC

Contacts

For Inquiries About the Project, Contact

Mr. Sanjay Agarwal, 19-A Dhuleshwar Garden Ajmer Road Jaipur 302 001 Telephone : (+91)(0141) 391 0000 Fax : (+91)(0141) 236 8815 Email : sanjay.agarwal@thefinanciers.com

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: 202-974-4384E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

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 Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

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

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer