Project detail - MAGMA FINCORP LIMITED

MAGMA FINCORP LIMITED

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Who is our client

Magma Fincorp Limited (“Magma”) a Mumbai-based non-deposit taking non-banking finance company (NBFC), is registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company started operations nearly three decades back and is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India. Magma a financial conglomerate offers a bouquet of financial products including commercial finance, agri finance, SME finance and mortgage finance and has a general insurance Joint Venture. Magma is focused on the rural and semi-urban sector with a widespread coverage and presence across 312 Branches

Funding objective

The facility will support the expansion of Magma's MSME loan portfolio as well as contribute to lengthening the maturity of the company's funding.

Why we fund this project

Providing funding to the company enables FMO to renew and further build on the longstanding partnership with the company. Magma is actively engaging with the MSME sector with a focus on the ‘underbanked’ segment, which matches well with FMO’s strategy to support the base of the pyramid. Through this transaction, FMO directly contributes to SDG 8 and 10.

Environmental and social rationale

This is an E&S C client. No exposure to activities on FMO's exclusion list or IFC-PS triggered transactions. Internally, Magma has adopted the Social & Environment Management System - Policy & Procedures Documents.

Region
Asia
Country
India
Sector
Financial Institutions
Signing date
12/6/2019
Total FMO financing
INR 3500.00 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)
B