FIVE - STAR BUSINESS FINANCE LTD
Status: Completed investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Five-Star is one of the few financial institutions in India that fully focuses on small enterprises, with an average loan size of about USD 6000, and a customer base of 5,270 as of March 2015. Despite a relatively well developed financial system in India, this segment remains deeply underserved. Five-Star aims at filling this gap with an attractive product offering, combined with conservative credit procedures.
What is our funding objective?
The facility will support the growth of the financial institution and the strengthening of its long term funding profile. It will help it grow to reach 10,000 clients by 2018.
Why do we fund this investment?
The target segment of Five-star is exclusively small-business owners (tea shops, vegetable vendors, small workshop owners etc.), very much in line with MASSIF and FMO mandate; additionality of our funding is expected to be very high. We will be the first international lender to Five-Star. Our fixed-rate and 5-year facility will strengthen the funding profile of this growing NBFC. We will also provide support with its management systems, its risk management framework and its client protection practices.
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 12/14/2015
- End date
- 1/21/2021
- Total FMO financing
- INR 300.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B