IFC to invest $75 million in Cholamandalam Investment

Proceeds to be used to extend loans to small road transport operators

The International Finance Corporation (IFC) has proposed to invest around $75 million in first rupee-denominated offshore bond (Masala bond) of Cholamandalam Investment and Finance Company Limited (CIFCL), part of the Chennai-based Murugappa Group.

IFC would play a catalytic anchor role in the proposed $125-200-million bond placement by the company. Its support should enable CIFCL to launch its first off-shore local currency bond for international investors and open the platform to more such solid, reputable but below international investment grade issuers to access the market, said the World Bank's investment arm.

IFC's catalytic support will help attract additional funds from other