Project detail - SATIN CREDITCARE NETWORK LIMITED

SATIN CREDITCARE NETWORK LIMITED

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Who is our client

Satin Creditcare Network Limited was conceptualized and founded in 1990. In around 28 years since its inception, Satin today is India’s second largest MFI (as of Dec 2018) having started its journey with individual micro loans to urban shopkeepers. Today, the Company has an established, scalable and a sustainable business model. Satin offers its clients a variety of loan products under the MFI segment. As of September 2018, Satin had over 850 branches and a headcount of more than 9,000 employees across 19 states and union territories. Satin has a strong presence throughout Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, Assam, West Bengal and Odisha and is a dominant player in other states of operations.

Funding objective

Satin Creditcare Network Limited, will issue senior secured Non-Convertible Debentures CDs of ₹213 crore (USD 30mln equivalent) to FMO for a tenure of 5 years. The funds raised will be used to further the growth of Satin’s microfinance portfolio.

Why we fund this project

Our funding supports the growth of Satin’s microfinance portfolio which is primarily focused on women micro-entrepreneurs, both rural and urban, who find themselves at the base of the pyramid. As such, the facility fully contributes to FMO’s goal to support SDG 10 ‘Reduced Inequalities’.

Environmental and social rationale

E&S FI-C based on the nature (micro) of the portfolio. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. All transactions are screened in line with Satin’s exclusion list and in adherence to local law.

Region
Asia
Country
India
Sector
Financial Institutions
Signing date
12/11/2018
Total FMO financing
INR 2130.00 MLN
Fund
FMO
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)
C