The company, in a regulatory filing today said that the Board of Directors has considered and approved "setting up of a Housing Finance Company (HFC) as a subsidiary and approved necessary authorisations to make an application to National Housing Board and do the needful in this connection".
The International Finance Corporation (IFC) has recently said that it would invest around $75 million in first rupee-denominated offshore bond (Masala bond) of Cholamandalam Investment and Finance Company Limited (CIFCL), part of the Chennai-based Murugappa Group.
The masala bond issuance with IFC's support will open an entirely new funding source (foreign investors) for the company, which it can tap into to further its diversification plans, according to IFC's disclosure.
The proceeds of this investment will be used to extend loans to small road transport operators, most of whom are first-time borrowers or driver-turned-owners and SMEs (small and medium enterprises) in LIS, it said in an earlier announcement.
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