Sundaram Finance

completed

Sundaram Finance Limited (SFL or the company) is the flagship company of a Chennai-based diversified financial services conglomerate. Sundaram Finance Group is engaged in vehicle finance, mortgage finance, general insurance, asset management and manufacturing of auto components through various group companies. The promoters, belonging to the larger TVS Group, hold a 37% stake in the company with the other 63% widely held by Indian and foreign institutional investors and by retail Indian shareholders. SFL has a fifty year track record in financing the development of the road transport industry in India especially in the four southern states. The company continues to build its auto and truck finance business with a solid reputation. SFL is now one of the 5 largest Non-Bank Financial Companys (NBFCs) in India and is rated AAA for its medium term obligations by ICRA and AA+ by CRISIL for its fixed deposit obligations. SFL’s shares are listed on the national stock exchange of India. This project is to assist Sundaram Finance Limited (SFL or the company), a leading Indian non-bank financial company, to lengthen the maturity of its liability profile and broaden its funding base. IFC intends to grant a long-term loan of up to $45 million to SFL, to be used by the company to support its growing operations primarily for increasing trucking and automobile financing needs in rural and semi-rural areas -- a segment constituting an important part of the broader SME market and a critical part of the cargo transportation infrastructure in India.