SK FINANCE LIMITED
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
SK is a regulated NBFC active in north-western India. The company offers asset-backed financing in the vehicle and MSME lending segments to underserved entrepreneurs in rural and semi-urban areas. It currently serves 310k clients across 441 branches in 10 states.
What is our funding objective?
Our funding will be used to support SK's growing MSME portfolio. In addition, a part of our funding will be used to finance CNG vehicles, which are less polluting and hence, more environmentally acceptable than conventionally used petrol/diesel vehicles. Over 25% of new disbursements done by SK are for clients with no credit history, helping them gaining access to the formal finance industry and build a credit history.
Why do we fund this investment?
By partnering with SK, FMO can reach the underserved MSME segment in the rural and semi-urban areas of northwestern India, thereby contributing to reducing inequalities. Furthermore, by financing CNG vehicles FMO can help reducing air pollution and green house gas emissions, thereby contribution to climate action.
What is the Environmental and Social categorization rationale?
SK is categorized as an FI-C client, given the size and purpose of the portfolio loans. The company does not have exposure to activities on FMO’s exclusion list, IFC-PS triggered transactions or high risk sector exposures.
More investments
| Date | Total FMO financing |
|---|---|
| 12/9/2019 | INR 2900.00 MLN |
| 6/21/2019 | INR 480.00 MLN |
- Website customer/investment
- http://www.skfin.in
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 4/24/2023
- Effective date
- 5/25/2023
- Total FMO financing
- INR 4100.00 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) - C