IFC invests Rs 640 crore in Mahindra Finance

International Finance Corporation (IFC), a World Bank Group member, has invested Rs 640 crore (USD 100 million) in Mahindra & Mahindra Financial Services (MMFSL), through secured non-convertible debentures (NCDs).

The company will use the funds to augment its growth by extending loans to individuals, including farmers, to buy tractors, vehicles and other equipment, along with financing small and medium enterprises, MMFSL said in a release today.

"Our focus has been on enabling customers with innovative financial solutions, tailor made to their evolving needs, fuelling entrepreneurial aspirations, promoting self-reliance and transforming lives. We believe that we are uniquely positioned to serve and grow this segment because of our deep penetration and knowledge," said Ramesh Iyer, vice-chairman and managing director, MMFSL.

The new loan will help the company expand further and cater to the needs of small landholders, the release said.

IFC is the world's largest development finance institution focused on the private sector, and has invested USD 17 billion in over 400 companies in the country since 1956.