|29 May, 2019

Indian shadow bank to raise $222mln debt funds in IFC-anchored round

First Abu Dhabi Bank, MUFG Bank Ltd, National Bank of Ras Al-Khaimah PJSC, and CTBC Bank Co also participated in the funding round

An employee counts U.S. dollar bills before changing it to Philippine Pesos inside a money changer in Manila September 19, 2013. Image for illustrative purposes.

An employee counts U.S. dollar bills before changing it to Philippine Pesos inside a money changer in Manila September 19, 2013. Image for illustrative purposes.

REUTERS/Romeo Ranoco

BENGALURU - India's Cholamandalam Investment and Finance Company Ltd said on Wednesday it would raise $222 million in debt funds in an investment round anchored by World Bank arm International Finance Corporation (IFC).

The investment comes at a time when Indian non-banking financial companies are strained for funds due to a liquidity crisis that hit the sector hard last year, prompting the so-called shadow banks to look for funding overseas.

First Abu Dhabi Bank, MUFG Bank Ltd, National Bank of Ras Al-Khaimah PJSC, and CTBC Bank Co also participated in the funding round.

The investment will help expand access to finance for micro and small borrowers, especially in the rural and semi-urban parts of India, said Cholamandalam, whose core business is providing commercial vehicle finance and loan against properties.

(Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu) ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters Messaging: chris.thomas.thomsonreuters.com@reuters.net))