Cholamandalam Investment and Finance Company Ltd (CIFCL) on January 10 said it would raise Rs 400 crore tier-II debt from the UK-based CDC Group Plc through unsecured, subordinated, rupee denominated masala bonds.
The masala bonds were Cholamandalam Investment and Finance Company’s maiden issue which may be listed on the London Stock Exchange in future.
“CDC and CIFCL have joined hands to address the business credit requirements of small and medium road transport operators and micro, small and medium enterprise customers,” CIFCL managing director Arun Alagappan said in a press release here.
CDC’s investment in CIFCL’s masala bonds would support the extension of loans to driver-turned-owners and micro and small enterprises in underserved rural and semi-urban areas, he said.
“We look forward to working with CDC in promoting the economic and social well-being of our customers”, he said.
CDC supports businesses that can make goods and services more affordable and accessible for people in Africa and Asia.
The investment would help generate self-employment opportunities for low to middle-income customers.
“CDC’s commitment to CIFCL demonstrates our value as a Development Financial Institution with long-term patient capital,” CDC’s managing director and head of Asia Srini Nagarajan said.
“Our investment will enable CIFCL to extend loans to small vehicle owners and facilitate availability of credit to rural and semi-urban markets,” Nagarajan said.
Cholamandalam Investment and Finance Company offers vehicle finance, business and home loans. The company has more than 1,000 branches across the country.