Axis Bank is a listed on India’s National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Axis Bank was promoted jointly by the Unit Trust of India (“UTI”, now under the Administrator of the Specified Undertaking of the UTI -- SUUTI), Life Insurance Corporation of India (“LIC”), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company. The promoters cumulatively hold a 37.21% stake in Axis Bank with Foreign Institutional Investors (“FIIs”) holding an additional 37.68% stake as of 31st March 2011.

IFC plans to provide long term debt of $35 million on its own account and around $65 million parallel loans to be mobilized from international investors.

35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	35.0
Equity

* These investment figures are indicative

Axis Bank itself has its central office in Mumbai, India and its registered office in Ahmedabad, India. However, the Bank is expected to utilize the funding from IFC for investments in renewable energy companies and projects across the country.

1. Wider Impact: With a wide presence in India, Axis Bank has a natural advantage in terms of client reach which will allow it to expand rapidly in this area with IFC''s support. Through the proposed facility, Axis Bank can support a wider range of clients in the renewable energy and climate change space.
2. Demonstration Effect: Axis Bank''s expansion in this space is likely to help attract other financial institutions to increase their risk appetite and invest more actively in Climate Change sectors.
3. Greenhouse Gases (GHGs) savings: The proposed investment will result in substantial savings of GHG emissions as it will encourage investment in clean energy projects.
4. Institution Building: IFC''s support to Axis Bank will help it to scale up its capacity to assess clean energy projects through sharing of its experience and knowledge of the sector worldwide.

1. Sector Expertise: IFC has gained vast experience in the renewable energy and climate change space through several transactions with its clients in India and abroad. IFC''s presence and support would help Axis Bank scale up its portfolio in the space and develop a climate change focus and experience.
2. Long term funding: IFC''s loan, being long term will help Axis Bank provide funding for long gestation projects.
3. Environmental and Social Sustainability: Given IFC''s expertise in environmental and social standards, IFC is well positioned to support Axis Bank in developing global best practice E&S standards for its clients to adopt.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC will analyze the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of (i) The IFC Exclusion List; (ii) The applicable National Social and Environmental Laws and regulations and (iii) The IFC Performance Standards.

IFC will also appraise the FI’s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and review the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). Based on the review, the project will be required to:

Develop a Social & Environmental Management System (SEMS), prior to commitment to the satisfaction of IFC
Identify responsible, qualified persons to manage and implement the SEMS
Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements
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