International Finance Corporation is now planning to offer around $1000 Million in the funding round of debt to the Tata Motors Finance Limited, according to the report which has been revealed.
The proposed investment comprises of the senior, secured funding of around five years with the help of an external commercial borrowings or by the subsidiary to the non-convertible debentures issued by the non-banker lender, IFC said in a disclosure.
The company will also match some of the other IFFC investment with $300 Million from some other sources to create a $400 Million pool of financing commercial vehicle purchases with the SME in the low-income states of India.
IFC has also backed some of the other Indian non-bank lenders in some of the recent weeks, as it even depends on its bet on the segment that provides the loans for the low-cost houses and that even caters to SME’s.
In the previous week, it said that it planned to make a debt funding of around $75 Million in the Mahindra & Mahindra Financial Services Limited to help it augment lending to the Small, Micro and medium enterprises.
Source: Tata Motors