DCM MMFSL II

completed

 The proposed investment comprises a 3-year senior, secured funding of up to INR5,250M or US$75M to Mahindra & Mahindra Financial Services Limited (“MMFSL” or the “Company”). IFC’s investment will support the Micro, small and medium enterprises (MSMEs) including Very Small Enterprises (VSEs) segment in India by helping MMFSL augment its lending program to these enterprises. MSMEs and VSEs includes financing towards agricultural sector and the proposed investment will be on lent primarily to finance a range of agricultural equipment, utility and commercial vehicles. At least 50% of the proceeds are expected to be earmarked towards women owned SMEs including VSEs, and the remaining for growth of these segments in the low-Income states (LIS) of India. In addition, the Company has agreed to allocate an amount equal to 3 times IFC’s loan amount from its own balance sheet / other sources of funds to on lend to the MSME segment including VSE in LIS. The company will endeavor to disburse this amount during the period of this loan. MMFSL is a rural focused NBFC, and the financial services arm of the Mahindra and Mahindra (“M&M” or the “parent”) group. The Company offers a wide range of customized financial products to address its rural customer requirements. The Company’s business lines include vehicle and tractor loans, SME loans as well as fixed deposits products. As of December 31, 2018, MMFSL’s AUM stood at INR582B (US$8.3B) and equity at INR103B (US$1.5B). IFC may also mobilize additional funding from other investors for the project.