Chola 2022 Loan

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  The proposed project comprises of an up to US$350 million investment in Cholamandalam Investments & Finance Company Limited (Ltd) (CIFCL, the Company) through a 3-year US dollar (USD)-denominated senior secured loan. IFC will provide up to US$150 million through its own account, and mobilize up to US$200 million from other lenders, with an unspecified greenshoe. The proposed project supports vehicle financing for micro, small and medium enterprises (MSME), with a focus on the low-income states (LIS) and rural regions of India. The Covid-19 pandemic has aggravated the already weak economic environment for this segment since they are less resilient to exogenous shocks. Thus, this project is part of IFC’s systematic approach in India where IFC will work with different financial institutions (FIs) to continue to support the recovery of MSMEs from the Covid-19 pandemic and stimulate growth.