Summary of Proposed Investment
Project Number
7512
Company Name
CENTURION BANK OF PUNJAB LIMITED
Date SPI Disclosed
Apr 12, 1996
Country
India
Industry
Financial Markets
Status
Completed
Sector
Leasing Services
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Nov 11, 1996
Signed : Nov 20, 1996
Invested : Jun 30, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | India- India Infrastructure & Export Leasing Twentieth Century Finance Corporation Limited |
| Region | Asia |
Sector
Project No007512
Projected Board DateMay 16, 1996
Company NameTwentieth Century Finance Corporation Limited(TCFC, the Company)
Technical Partner and/or Major Shareholders
The shareholder structure as of December 31, 1995 was Twentieth Century Financial and Consultancy Services Limited (34.44%), Indian Financial Institutions (23.03%), Asian Development Bank (4.20%), IFC (3.44%), Unit Trust of India (1.47%), Directors and TCFC nominees (0.98%) and the public (32.46%). The principal shareholder group, Twentieth Century Financial and Consultancy Services Limited, comprises of three former Citicorp executives, Messrs. Devendra Ahuja, V.S. Srinivasan and Sanjay Kulkarni (and their close family members). The Company’s stock is listed on the Bombay stock exchnage.
Project Cost Including proposed IFC investment
US$30 million IFC Loan, all for IFC’s own account.
Location of project and Description of site
Bombay, India
Description of Company and Purpose of Project
TCFC’s core business is corporate leasing and hire purchase, which account for over 80% of the Company’s total income. TCFC was promoted by four ex-Citibank employees, headed by Mr. Devendra Ahuja. It was incorporated on August 31, 1979, under the name 20th Century Leasing Private Limited with an initial capital base of Rs. 2.8 million. The Company went public in 1982. In 1986, after its merger with its associated company 20th Century Orient-Leasing Limited, it changed its name to 20th Century Finance Corporation. TCFC has since grown into one of the largest private sector leasing companies in India. The Company has over 300 clients, including 55 of the top 100 companies in India.. The company is registered in Bombay and its head office is in Bangalore. The proposed loan will assist the Company with long-term resources to support TCFC’s program of funding Small and Medium-Sized Enterprises (SMEs), especially those with significant exports, as well as other companies with small infrastructure-related projects. Since 1991, exports from India have been growing at a compound rate of more than 20% per year, with an increasing share coming from SMEs. In 1995, the import intensity of capital goods has increased as Indian firms strive to meet international standards and this is a market TCFC plans to tap by providing leases for imported equipment. In addition, TCFC plans to serve infrastructure activity, particularly in construction and power, where there continues to be a large unsatisfied demand.
Environmental Category and Issues
This is an environmental review category FI project. For relevant operations, TCFC will be required to implement an environmental risk management system consistent with the requirements of the Government of India and the policies of the World Bank group. In addition, IFC will assess TCFC’s capability to implement the system. TCFC has committed to participating in an environmental risk management workshop and to providing an environmental risk management plan satisfactory to IFC.
| Date SPI sent to PIC | April 12, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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