World Bank investment arm to channel $200 mn into Shriram Transport Finance

The proceeds will be used for lending to small road transport operators and MSMEs in rural and semi-urban areas in low-income states

Shriram Transport Finance Company Ltd is raising $200 million (around Rs 1,420 crore) from International Finance Corporation and other investors through a securitisation structure

IFC, the World Bank's private-sector investment arm, said the structure would help mitigate foreign exchange risks and attract patient capital from pension funds, insurance firms, and foreign institutional investors. Half of the total amount will come from IFC’s own account and the rest will be mobilised from like-minded partners. The first tranche of $82 million was disbursed on Thursday. Half of which is from IFC’s own account.

The proceeds will help Shriram Transport meet its funding requirements