Bandhan Sub Debt

completed

The proposed project envisages a subordinated debt investment in Bandhan Financial Services Private Limited (“Bandhan” or the “Company”) which is India’s largest microfinance institution in terms of number of borrowers and portfolio outstanding. Bandhan is registered as an NBFC-MFI and is headquartered in Kolkata, West Bengal with a borrower base of more than 5 million women borrowers and a loan portfolio of approximately INR54,000 million (US$870 million equivalent). Bandhan has predominantly rural operations in 22 Indian states including some of the eastern and north eastern states and has emerged as amongst the key players in the area of provision of formal credit services to low income households.IFC’s proposed investment will manifest its support for an existing portfolio investee and help Bandhan in its plan to become a comprehensive financial services provider for low income households, to diversify its sources of funding by providing subordinated debt which will enable it to increase its regulatory capital and to expand the outreach of access to microfinance to borrowers who have little or no access to formal sources of financing.