RKF COVID Response

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Founded in November 1981, headquartered in Kolkata, India Ramkrishna Forgings Limited (“RKFL” or the “Company”- https://www.ramkrishnaforgings.com/) manufactures forged and machined transmission and axle components for medium and heavy commercial vehicles. RKFL has its three operational manufacturing units at three sites (Unit 1, Unit 3&4 at one site, Unit 5) in Jamshedpur in Eastern India and one unit at Liluah, Howrah near Kolkata.RKFL products include rolled, forged, machined products as well as components used in various industries and sectors like automotive, railways, farm equipment, bearings, oil &gas, power and construction, earth moving &mining, both in India and overseas. It is also a supplier for critical safety items such as screw coupling, bolster suspension, side frame keys and draw gear assembly for railway coaches and wagon. Since a long time, RKFL has been a preferred supplier to Original Equipment Manufacturers (OEMs) like TATA Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, Iveco, Ford in the overseas markets. RKFL globally supplies to Tier 1 axle manufacturers like Dana, Sisamex, Meritor and American Axles. RKFL is an existing IFC client in good standing. IFC’s ongoing supervision of the existing investment in the Company indicates the Company’s compliance with IFC’s environmental and social (E&S) requirements and the associated overall performance is satisfactory. As a result of the COVID-19 pandemic, all of the Company’s  manufacturing operations were closed during late March - early May 2020, due to countrywide lockdown and cascading effects on supply and demand. As the prolonged and widespread crisis can lead to liquidity constraints, RKFL is interested in securing long-term funding to support incremental working capital requirements, and to strengthen its balance sheet. The proposed investment is by way of (a) subscription to unlisted, secured non-convertible debentures (NCDs) up to INR1,100 million (equivalent to US$14.6 million) issued by RKFL and (b) at IFC’s option, subscription to NCDs and/or an equity/quasi equity instrument, aggregating up to INR400 million (equivalent to US$5.3 million), issued by the Company (the “Project”) to support its liquidity requirements given the impact of the Coronavirus epidemic including requirements for long term working capital, general corporate purposes and maintenance capex at the Company’s existing facilities.