IFC to invest $350-M in Chola Finance

IFC proposes to invest up to USD 350 in Chennai-based Cholamandalam Investments & Finance Company Ltd (CIFCL) through a 3-year US dollar-denominated senior secured loan. IFC will provide USD 150 million through its own account, and mobilize up to USD 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. 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.