April 3, 2015
Jain Irrigation Systems Ltd’s agri non-banking financial company (NBFC) subsidiary, Sustainable Agro-Commercial Finance Ltd (SAFL) has raised US$17.9 million from UK-based Mandala Capital AC Ltd, which invests in companies involved in the agriculture sector in Southeast Asia.
The deal was completed through a combination of equity shares at a premium of $6.7 million, and a long term debt facility of six years of 10% unsecured non-convertible listed debentures of approximately $11.2 million. Upon completion of this deal, SAFL’s combined tier 1 and tier 2 financing will total $33.2 million. Mandala will receive a 20% stake in SAFL, and Jain’s stake will be reduced to 49%.
Based in Jalgaon, India, Jain Irrigation is a major player in the agri-industry sector with plants across India, the U.S., the UK, Switzerland, Israel, and Turkey. Its subsidiary, Mumbai-based SAFL was founded in 2011 and provides loans to small scale farmers to fund the installation and adoption of micro irrigation systems to improve production.
Mandala Capital manages the Mandala Agribusiness Fund – a dedicated agribusiness private equity fund backed by the University of Texas Investment Management Co. (UTIMCO) and TIAA-CREF as its anchor investors. The fund focuses on investments in agri-technology, seed, sugar, and cold storage in the Indian market.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service
Let GAI News inform your engagement in the agriculture sector.
GAI News provides crucial and timely news and insight to help you stay ahead of critical agricultural trends through free delivery of two weekly newsletters, Ag Investing Weekly and AgTech Intel.