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Portfolio/Au Financiers (India) LTD

USD 20 million equivalent partial credit guarantee for long term senior debt raised by Au Financiers (AuF)

Au Financiers India Ltd
Transport
India

Overview

DATE OF TRANSACTION

MARCH 2013

COUNTRY

INDIA

FINANCING PARTNERS

FMO, CDC GROUP

GUARANTCO GUARANTEE

UP TO THE INR EQUIVALENT OF USD 20 MILLION

Sector

Transport

TOTAL TRANSACTION AMOUNT

INR EQUIVALENT OF USD 60 MILLION

GuarantCo Benefits

AuF is a rapidly growing company, reflecting the underserved nature of its core market. Besides growing its core business of transportation services financing, AuF is also diversifying into providing financing for housing and small business enterprises (usually linked to the transportation sector).

AuF’s debt requirements grow in line with its portfolio growth, and its strong track record and good portfolio quality has meant it has been able to raise financing from Indian banks and financial institutions when required. However to ensure that its funding arrangements keep pace with its growth plans, AuF needed to diversify its sources of funding. The facility provided by GuarantCo, FMO and CDC Group will provide AuF with stable long term funds with which it can continue providing affordable loans to small entrepreneurs.

Development Benefits

AuF provides financing predominantly for small entrepreneurs engaged in commercial passenger/ goods transport services in rural and semi urban areas of India. Over 50% of AuF’s portfolio is in Rajasthan, one of India’s poorest states.

These small entrepreneurs play an important role in the provision of transportation services in rural and semi urban India, but are unable to get financing from banks due to their lack of credit history and small loan sizes. Such small entrepreneurs are usually lowly paid employees working in the transportation sector, and AuF’s financing provides them an opportunity for social and economic mobility by owning their own vehicles or other productive assets.

The facility provided will help AuF provide c. 15,000 small loans, directly benefitting c. 22,000 people and indirectly benefitting many more

ALL PROJECTS

View more development by sector

Agricultural Infrastructure Agriculture Energy Gas ICT/Telecoms Inputs to Infrastructure Manufacturing Oil Power Transport Urban Infrastructure Water / Waste services

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