SAMUNNATI FINANCIAL INTERMEDIATION
Status: Approved investmentWhy disclosure?
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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
Samunnati Financial Intermediation & Services Private Limited (“Samunnati”) is a Non-Banking Financial Company in India providing financial as well as agricultural service solutions throughout the entire value chain in agriculture. Samunnati enables growth in the value chain of an agricultural ecosystem. While empowering farmers and expanding Agri Enterprises, Samunnati propels the value chain to greater heights and better yield through financial, non-financial and customized solutions. This includes extending loans to the agricultural value chain ranging from smallholders to Agri Enterprises and offering advisory and market linkage services which lead to higher transaction volumes and higher incomes for smallholder farmers. Working with farmer cooperatives and organizations enables Samunnati to reach out to small farmers in a sustainable way. The company is present in 54 value chains in 19 states with a significant scale up of operations over the past 3 years.
What is our funding objective?
FMO will provide EUR 5mln in INR equivalent to Samunnati to on-lend to agribusinesses in the value chain.
Why do we fund this investment?
The loan to Samunnati achieves FMO’s goals of providing access to finance in the agricultural value chain. The sector is characterized by low access to finance and products offered by the financial sector do not cater for the needs of smallholder farmers or agriculture companies. Samunnati aims to provide solutions to all players across the entire value chain through financial intermediation, market linkages and advisory services.
What is the Environmental and Social categorization rationale?
E&S risk profile is category FI-B. Samunnati can be classified as lower risk because of the short tenor/small size working capital loans to SME agriculture businesses and cooperatives supporting small-scale farmers.
More investments
| Date | Total FMO financing |
|---|---|
| 4/4/2023 | INR 353.10 MLN |
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 12/11/2020
- Total FMO financing
- INR 448.00 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