Signals, Powered By EquityPandit
The International Finance Corporation (IFC) has proposed to invest approx USD 75 million in Cholamandalam Investment and Finance Company Limited (CIFCL). This investment will be in first rupee denominated offshore bond (Masala bond).
CIFCL, is a part of the Chennai based Murugappa Group and IFC would play a catalytic anchor role in the proposed $125-200 million bond placement by the company.
As per the IFC’s disclosure, “The Masala bond issuance with IFC’s support will open an entirely new funding source (foreign investors) for the company, with which, it can tap its further diversification plans.”
Moreover, the proceeds from the investment will be utilized, in extending loans to small road transport operators, most of whom are first-time borrowers or driver turned owners and SMEs in LIS.
