IFC to Invest $45M in Listed Non-Banking Indian Finance Co
Wednesday, May 18, 2011
International Finance Corporation (IFC) plans to invest $45 million as equity in an unnamed public-listed mid-size Indian non-banking finance company (NBFC) for expanding access to finance for the micro, small and medium entrepreneurs.
Although the name of the target company stands undisclosed, its primary business is ’asset-backed financing’ – focused on providing funds to the bottom-of-the-pyramid stratum in rural and semi-urban areas. The NBFC has significant presence in the low-income states across the country. It can be either a rural consumer finance firm or a gold loan company or a commercial vehicle finance firm.
The company is planning to raise $100 million or Rs 450 crore for meeting its growth plans and IFC proposes to invest up to $45 million.