Mandala backs Indian agriculture finance business
Mandala Capital has invested INR1.1 billion ($17.9 million) in Sustainable Agro-commercial Finance (SAFL), a agriculture-focused non-banking financial company (NBFC) controlled by India's Jain Irrigation Systems (JISL).
According to a statement, the deal comprises equity shares worth INR420 million and INR700 million of long-tenure debt in the form of 10% unsecured non-convertible listed debentures. It will give Mandala a 20% stake in SAFL while JISL's stake be reduced to 49%. The International Finance Corporation (IFC) is another investor in the firm.
Set up in 2011, SAFL offers loans to small-scale farmers to help them install micro-irrigation systems and improve productivity. The company claims to have served over 15,000 farmers since inception.
Its parent JISL is one of the largest agro-industrial businesses in India focusing on water and irrigation; agriculture, farming and food processing; and clean energy. It also has operations in the US, UK, Turkey, Switzerland, and Israel.
Mandala is a South Asia-focused private equity firm that invests in the agricultural sector. Last November it acquired a 30% stake in the cold chain unit of Indian express distribution and supply chain solutions provider Gati for INR1.5 billion. In 2012, it entered into a joint venture with Australia's Water Resources Group that targets desalination opportunities in India, Pakistan, Sri Lanka and Bangladesh.
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