According to IFC, the proposed project comprises of an up to US$350 million investment in Cholamandalam Investments & Finance Company Limited (Ltd) (CIFCL, the Company) through a 3-year US dollar (USD)-denominated senior secured loan. IFC will provide up to US$150 million through its own account, and mobilize up to US$200 million from other lenders, with an unspecified greenshoe. The proposed project supports vehicle financing for micro, small and medium enterprises (MSME), with a focus on the low-income states (LIS) and rural regions of India. The Covid-19 pandemic has aggravated the already weak economic environment for this segment since they are less resilient to exogenous shocks. Thus, this project is part of IFC’s systematic approach in India where IFC will work with different financial institutions (FIs) to continue to support the recovery of MSMEs from the Covid-19 pandemic and stimulate growth.
Invested on July 19th 2022.
The proposed project comprises of an up to US$350 million investment in CIFCL through a 3-year USD-denominated senior secured loan. IFC will provide up to US$150 million through its own account, and mobilize up to US$200 million from other lenders, with an unspecified greenshoe. The proposed project supports vehicle financing for MSMEs, with a focus on the LIS and rural regions of India.
CIFCL is one of the leading asset financing NBFCs in India with assets under management (AUM) of USD 9.98 billion as on 31 March 2022, with a very strong distribution network that caters to over 1.87 million customers through 1,145 branches across India. The company primarily lends to MSME clients in the transportation sector that are economically weak, have limited credit history and therefore are unable to raise funds from commercial banks.
CIFCL is listed on the Bombay Stock Exchange and National Stock Exchange and has a market capitalization of USD 7.1 billion as of 20 May 2022. As of 29 April 2022, 52 percent of CIFCL’s shares were held by the promoter & promoter group, 18 percent were held by foreign institutional investors, 21 percent were held by mutual funds, 6 percent were held by public shareholders, and 3 percent were held by others.
CIFCL is headquartered in Chennai, Tamil Nadu and has 1,145 branches across India.
Cholamandalam Investment and Finance Company Limited
Mr. Hardik D. Pandya
Assistant Vice President – Treasury
Dare House, 1st Floor, 2, NSC Bose Road, Chennai 600001, Tamil Nadu, India
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