Cholamandalam Finance raises Rs 400 crore Tier-II debt from CDC Group

The fund is raised through 10-year Rupee Denominated Masala Bonds

Cholamandalam Investment and Finance Company Limited (CIFCL), financial services company under Murugappa Group, has raised Rs 400 crore ($57 million) from CDC Group Plc, the United Kingdom’s Development Finance Institution and an impact investor, through the issuance of unsecured, subordinated, rupee denominated Masala Bonds. This is CIFCL’s maiden Masala Bond issue which may be listed on London Stock Exchange or any other international stock exchanges in the future.

Arun Alagappan, managing director of CIFCL, said, "CDC’s investment in CIFCL’s Masala Bonds will support the extension of loans to driver-turned-owners and micro and small enterprises in underserved rural and semi-urban areas