IFC to Lend $150M to Shriram Transport Finance
Wednesday, April 6, 2016
International Finance Corporation (IFC), the private sector lending arm of the World Bank, has agreed to invest $150 million in Shriram Transport Finance Company Ltd (STFCL) in the form of senior debt to help the firm provide more finance to micro, small and medium enterprises (MSMEs).
STFCL, the flagship company of the Shriram Group, is a non-banking finance company, primarily focused on financing pre-owned commercial vehicles across India. STFCL caters to more than 1.2 million clients who are typically first-time users or driver-turned owners.
The NBFC will use the money for financing commercial vehicles in low-income states.
The investment “will help leverage the capital of the group, a strong potential strategic partner, to effectively expand its reach the base of the pyramid,” said IFC.