📋 Tender Overview
Project Name
Five-Star Social Loan Improving Access to MSME Finance for Lower-Income Women Borrowers Project
Project Number
58533-001
Borrower / Company
Five-Star Business Finance Limited
Country / Economy
India
Location
Nation-wide
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
Loan Ordinary capital resources USD 100.00 million Proposed
Sector / Subsector
Finance / Small and medium enterprise finance and leasing
Gender
Project Sponsor(s)
Description
The project entails Asian Development Bank (ADB) providing long-term debt financing to FBFL to support the financing of micro, small, and medium-sized enterprises (MSME) business loans to eligible women borrowers in the lower-income group under a women-inclusive social loan framework.
Objectives and Scope
The project will support onlending for MSME business loans to eligible women borrowers in the lower-income group under a women-inclusive social loan framework.
FBFL will disburse an additional $200 million from its own resources to the same segment under the social loan framework over a four-year period from the disbursement date of the first tranche.
ADB will provide support to FBFL in obtaining the necessary external verification of the social loan framework through existing technical assistance.
Linkage to Country/Regional Strategy
The project is aligned with ADB's country partnership strategy for India, 20232027, which focuses on accelerating structural transformation and job creation, and deepening social and economic inclusiveness.
Safeguard Categories
Environment
FI-C
Involuntary Resettlement
FI-C
Indigenous Peoples
FI-C
Summary of Environmental and Social Aspects
Environmental Aspects
The proposed project with FBFL will support MSME business loans to women in the lower-income group, with loans up to $11,000. Given the loan size range and the borrowers' engagement in the services sector, the project is expected to have minimal to no environmental impacts. FBFL has an exclusion list aligned with ADB PIAL and ESG policies to identify and manage social impacts. FBFL committed to exclude loans Categorized as A or B for environment.
Involuntary Resettlement
The proposed project with FBFL will support small-scale enterprises and manufacturing activities with loans up to $11,000. The size of the loans and the nature of the activities, no physical or economic displacement is expected. FBFL has an exclusion list aligned with ADB PIAL and ESG policies to identify and manage social impacts. FBFL committed to exclude loans Categorized as A or B for involuntary resettlement.
Indigenous Peoples
The proposed project with FBFL will support small-scale enterprises and manufacturing activities with loans up to $11,000. Given the nature of the loan activities, these will not result to impacts to distinct and vulnerable Indigenous Peoples. FBFL has an exclusion list aligned with ADB PIAL and ESG policies to identify and manage socia
