IFC plans debt investment in Mahindra & Mahindra Financial

IFC plans debt investment in Mahindra & Mahindra Financial
IFC plans debt investment in Mahindra & Mahindra Financial

International Finance Corporation plans to make a debt investment of up to $75 million (Rs 525 crore) in non-bank lender Mahindra & Mahindra Financial Services Ltd. The investment will help the non-banking financial company to augment lending to micro, small and medium enterprises, the World Bank′s private-sector arm said in a disclosure. IFC said that - apart from the three-year senior, secured debt investment - it may also mobilise additional funding from other investors for the company. Separately, Mahindra Finance - as the company is commonly known - will allocate an amount equal to three times IFC's loan from its own balance sheet or other sources to lend to the MSME segment. IFC also said that at least half the proceeds of its loan are likely to be earmarked towards women-owned SMEs and the remaining for growth of MSMEs in low-income states of India. Mumbai-listed Mahindra Finance is a rural-focused NBFC and the financial services arm of the auto-to-software Mahindra & Mahindra group. It offers vehicle and tractor loans, SME loans as well as fixed deposits via more than 1,300 branches across India.

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