SUSTAINABLE AGRO COMMERCXIAL FINANCE LTD FOCUSES ON ENHANCING CREDIT FACILITIES TO AGRO SECTOR

AGRICULTURE

Sustainable Agro-commercial Finance Ltd 

(SAFL) raises Rs. 112 crores

Equity and Long Term Debt 

Focus on enhancing the credit facilities 

to Agro Sector

by Shrutee Kate /DN

Mumbai, 1^st April 2015: Sustainable Agro-commercial Finance Ltd. (SAFL), perhaps the first retail agriculture finance focused Non Banking Financial Company (NBFC) in India has raised long term non-convertible, subordinate bonds in the form of NCDs of Rs.70 crores from funds managed by Mandala Capital Limited (Mandala) to support its agri-lending activities. These NCDs are structured as Tier II capital for the company. In addition, SAFL has successfully issued Rs.2.40 crores equity shares of Rs.10 each aggregating Rs.24 crores with a share premium totaling Rs.18 crores. Mandala is a fund manager specializing exclusively in investing for the long term in India's fast-evolving food and agribusiness sector. 

SAFL, a NBFC promoted by Jain Irrigation Systems Ltd (JISL), will deploy the capital to broaden its reach in the rural and semi urban areas in Maharashtra, Karnataka and Telangana initially followed by Madhya Pradesh and Gujarat. SAFL is the first NBFC in India providing agri-loans with a wide and diverse range of financing options for almost every need of agricultural activity. It envisages a pan India presence with a network of over 250 branches / satellite offices in rural and semi-urban areas in the next five years. SAFL finances Micro Irrigation Systems (MIS) like Drip Irrigation and Sprinkler Irrigation, Agri Projects, Lift Irrigation schemes, Small Business, Small Farm Equipment, Solar Pumps & Appliances, Farm Mechanization, Land development, Horticulture Plantations, Poly Houses, Shade nets, Dairy etc.

Speaking on the development Mr. Arvind Sonmale, Managing Director & CEO, SAFL said, "SAFL is steadily expanding presence in other states and is delighted to have Mandala join SAFL as a financial partner in a transaction which we believe will make our company one of the most bankable in the sector”. “We are now looking forward to a period of accelerated lending activity and we think the prospects for our key lending products are extremely positive." added Mr. Sonmale.

Mr. Uday Garg, CEO of Mandala Capital said, "Mandala's mandate is to identify companies which can become tomorrow's key players in the new food and farming infrastructure currently being built in India. We are delighted to be joining as a shareholder in SAFL alongside the IFC and Jain Irrigation Systems Limited.

The Rs.70 crores NCD issue has been structured to qualify as Tier 2 capital which is designed to make SAFL one of the best capitalised NBFC in its sector compared to the size of its loan book which will improve the company's access to wholesale debt funding at competitive rates, and enable the company to expand its lending activity substantially on long term basis. The equity investment will have the effect of reducing the shareholding of Jain Irrigation Systems Limited ("JISL", "Jains") to 49%, from the 61.25% held earlier.

About SAFL:

Sustainable Agro-commercial Finance Ltd. (SAFL), is the first focused retail agriculture NBFC in India, promoted by Jain Irrigation System Limited, the largest company in Asia in the field of drip irrigation. IFC, Washington is the first and anchor investor in the company. SAFL has a network of 52 offices spread over 45 offices in Maharashtra, 6 locations in Karnataka and 1 location in Telangana.