IFC, a member of World Bank Group, on Wednesday said, it has anchored investments of $222 million into city-based Cholamandalam Investment and Finance Company Ltd (CIFCL) to serve customers in rural and semi-urban areas.

From the total amount (of $222 million), $92 million is from IFC and the rest are syndicated from First Abu Dhabi Bank ($50 million), MUFG Bank Ltd ($50 million), National Bank of Ras Al-Khaimah PJSC ($20 million) and CTBC Bank Company Ltd ($10 million), a company statement said.

“Supporting productive asset financing NBFCs is part of our financial inclusion strategy because it offers income opportunities...,” IFC Country Head, India, Jun Zhang said.

“Cholamandalam’s wide reach among small road transport operators and micro, small and medium enterprises makes it the right partner for us to reach underserved segments”, he said.

MSMEs, small road transport operators face constraint of accessing finance with credit gap pegged at $397 billion.

By bringing foreign banks as investors, IFC is helping CIFCL to diversify its funding sources. This is IFC’s first United States (US) dollar syndicated deal since January 2019.

Cholamandalam Investment currently has 900 branches across the country managing assets of over Rs 54,000 crore.