Project detail - NATIONAL COLLATERAL MANAGEMENT SERV

NATIONAL COLLATERAL MANAGEMENT SERV

Status: Approved investment
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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

National Collateral Management Services Limited (“NCML” or the “Company") founded in 2004, is an agricultural commodities storage company headquartered in Gurgaon, India. The Company’s objective is to provide the best handling, storage, custodian and supply chain management solutions for commodities throughout the warehousing industry in addition to weather intelligence and certification via its laboratories. NCML operates a pan-India network of warehouses with more than 1.7 million metric tonnes storage capacity.

What is our funding objective?

The objective of our funding is to finance the construction of new steel silos for the storage and preservation of staple foods products; wheat and rice, for the purpose of securing food for the Indian food security system.

Why do we fund this investment?

The rational for FMO to finance this transaction is based on the fact that the total food waste in India equals the total consumption of food in the UK. A “Zero tolerance to food waste” is highly promoted by the Indian Government. Supporting the expansion of NCMLs storage and preservation capacity will have a major impact on the agri-sector and food security in India. In addition, we will improve access to finance to the farmer community thereby promoting agriculture development as a means of alleviating poverty. NCML indirectly services over one million farmers.

What is the Environmental and Social categorization rationale?

E&S risks are categorized as Category B+ mainly due to organizational health and safety, supply chain and land acquisition risks largely limited to the client’s business procurement division. These potential risks can be mitigated when managed according to the following IFC performance standards: PS 1 Assessment and Management of Environmental and Social Risks, PS 2 Labor and working conditions, PS 5 Land Acquisition and Involuntary Resettlement, and PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. The client does not/will not perform any industrial processing, and their operations are located with considerable distances to communities, hence PS 3 and 4 are not applicable. The project sites are not in the sphere of influence of Indigenous People (PS 7) nor Cultural heritage (PS8) based on this performance standards 7, and 8 are not applicable. If FMO’s investment proceeds, FMO will periodically review the project’s compliance with the Performance Standards and adequate mitigation measures will be agreed.

Region
Asia
Country
India
Sector
Agribusiness, Food & Water
Publication date
11/19/2019
Effective date
12/26/2019
Total FMO financing
INR 3200.00 MLN
Funding
FMO NV
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+