Project detail - MAGMA FINCORP LIMITED

MAGMA FINCORP LIMITED

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

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

What is our 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 do we fund this investment?

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.

What is the Environmental and Social categorization 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
Effective date
12/6/2019
Total FMO financing
INR 3500.00 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