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IFC to invest $40 million in Tata Capital

Investment by IFC involves subscription of secured NCDs

IFC

T E Narasimhan Chennai
Tata Capital Ltd will raise $40 million (around Rs 260 crore) from International Finance Corporation. The proceeds of the IFC financing will be channelised to farmers in rural areas.

The investment would involve IFC subscribing to secured NCDs issued by Tata Capital in one or more tranches. The tenor will be 5-year bullet, said IFC.

The proceeds of the IFC financing will be channelised to farmers in rural areas for financing tractors and other agricultural equipment. These segments have limited access to finance from the organised sector, according to IFC disclosure.

"IFC's investment would allow TCFSL to meet its funding requirements from a diversified source and assist in reducing bank borrowings," said the World Bank's investment arm.

 

Tata Capital Financial Services Limited (TCFSL) is a wholly owned subsidiary of Tata Capital Limited (TCL) and is a Systemically Important Non Deposit Accepting Non Banking Financial Company (NBFC).

 

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First Published: Nov 04 2015 | 9:54 AM IST

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