AU SMALL FINANCE BANK LIMITED
Status: Completed 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
AU is a prominent, retail focused non-banking finance company (NBFC) now recipient of final approval from the Reserve Bank of India (RBI) to set up a small finance bank (SFB), the only NBFC categorized as an asset finance company to obtain such license. AU is primarily serving low and middle income individuals and businesses that have limited or no access to formal banking and finance channels. Au operates in vehicle finance and MSME loans. AU believe that transitioning to an SFB offers them a significant growth potential and aims to be a retail focused, preferred and trusted SFB offering integrated and tailored solutions to its customers towards achieving aim of financial inclusion of Indian Government.
What is our funding objective?
The investment from FMO (Guarantco) will be used to expand AU's Commercial Vehicle Finance business and SME Loans segment. The funds will be channeled through AU to the self-employed for acquiring commercial vehicles (out of which 60 percent contributing towards First time user / First time buyer) to generate income and to the (M)SME sector for business expansion, working capital and equipment purchase also to earn their livelihood with vehicles and SME businesses.
Why do we fund this investment?
Aside from job creation and earning resources for SMEs of low income strata in rural and semi urban markets, 30 percent portion of this facility qualifies for green financing since 30 percent portion of funding shall be earmarked for financing of CNG vehicles. This will further improve energy efficiency of the local transport sector as well as air quality in India.
More investments
| Date | Total FMO financing |
|---|---|
| 10/11/2018 | INR 1466.67 MLN |
- Website customer/investment
- http://www.aufin.in
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 3/10/2017
- End date
- 3/29/2021
- Total FMO financing
- INR 1700.00 MLN
- Funding
- FMO NV
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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