You are here: Home » Companies » News
Business Standard

Cholamandalam Finance raises Rs 400 crore Tier-II debt from CDC Group

The fund is raised through 10-year Rupee Denominated Masala Bonds

Gireesh Babu  |  Chennai 

funds

Limited (CIFCL), financial services company under Murugappa Group, has raised Rs 400 crore ($57 million) from CDC Group Plc, the United Kingdom’s Development Finance Institution and an impact investor, through the issuance of unsecured, subordinated, rupee denominated This is CIFCL’s maiden Masala Bond issue which may be listed on London Stock Exchange or any other international stock exchanges in the future.

Arun Alagappan, managing director of CIFCL, said, "CDC’s investment in CIFCL’s will support the extension of loans to driver-turned-owners and micro and small enterprises in underserved rural and semi-urban areas of India."

Srini Nagarajan, CDC’s Managing Director and Head of Asia, said, "Our investment will enable CIFCL to extend loans to small vehicle owners and facilitate availability of credit to rural and semi-urban markets and support the Company with subordinated-debt in this tight liquidity environment. CDC has been investing in India for over 30 years and we look forward to the start of a productive long-term relationship with CIFCL and the wider Murugappa Group.”

As of September 30, 2019 around 74 per cent of its portfolio comprises of vehicle loans, 21 per cent loan-against-property to MSME sector, and the the rest in affordable home finance and others. It has more than 1,000 branches across India, and around 1.2 million customers.

First Published: Fri, January 10 2020. 18:00 IST
RECOMMENDED FOR YOU