: IFC, a member of World Bank Group, Wednesday said, it has anchored investments of USD 222 million into city-based Cholamandalam Investment and Finance Company Ltd (CIFCL) to serve customers in rural and semi-urban areas.
From the total amount (of USD 222 million), USD 92 million is from IFC and the rest are syndicated from First Abu Dhabi Bank (USD 50 million), MUFG Bank Ltd (USD 50 million), National Bank of Ras Al-Khaimah PJSC (USD 20 million) and CTBC Bank Company Ltd (USD 10 million), a company statement said.
"Supporting productive asset financing NBFCs is part of our financial inclusion strategy because it offers income opportunities...," IFC Country Head, India, Jun Zhang said.
"Cholamandalam's wide reach among small road transport operators and micro, small and medium enterprises makes it the right partner for us to reach underserved segments", he said.
MSMEs, small road transport operators face constraint of accessing finance with credit gap pegged at USD 397 billion.
By bringing foreign banks as investors, IFC is helping CIFCL to diversify its funding sources. This is IFC's first USD syndicated deal since January 2019.
Cholamandalam Investment currently has 900 branches across the country managing assets of over Rs 54,000 crore.
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