FMO has invested in a senior debt facility and a foreign currency convertible bond that will be provided to Jain Irrigation Systems Ltd. as part of a greater financing package.
Jain Irrigation Systems Ltd. is one of India’s largest integrated agribusiness players, with manufacturing operations in micro irrigation systems and piping systems, PVC sheets, agro processed products and renewable energy. Jain is the second largest micro irrigation systems player globally and is the leading market player in India.
Adoption of micro irrigation systems by farmers increases farm yields and decreases the dependency on weather conditions, having a direct positive impact on farmers’ income. Furthermore, it improves water management. In India, 80% of water resources is being used by agriculture and hence maximizing water usage is essential.
The funds of the financing package will be used by Jain Irrigation Systems Ltd to expand its domestic capacity in India, helping the company to remain a market leader in India, and to continue international expansion in several countries in Africa.
