Project detail - FIVE - STAR BUSINESS FINANCE LTD

FIVE - STAR BUSINESS FINANCE LTD

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Who is our client

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.

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 we fund this project

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
Signing date
12/14/2015
Total FMO financing
INR 300.00 MLN
Fund
MASSIF
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