PROJECT

Projects

Summary of Investment Information

Project Number

34658

Company Name

CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED

Date SPI Disclosed

Feb 20, 2014

Country

India

Region

South Asia

Projected Board Date

Mar 24, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Apr 9, 2014
Signed : Nov 13, 2014
Invested : Nov 25, 2014

Sector

Finance Companies

Project Description

The proposed project envisages a Tier II debt investment in Cholamandalam Investment and Finance Company Limited (“Chola” or the “Company”) which is a leading NBFC headquartered in Chennai, Tamil Nadu. It is primarily focused in the rural and semi-urban sector with 90% presence across Tier III and Tier IV towns and has a loan portfolio of approximately INR220,000 million (US$3,225 million equivalent). The core business segments include vehicle finance, home equity loans, corporate finance, stock broking and distribution of financial products. The shares are listed in the Bombay (BSE) and National (NSE) Stock Exchanges.

IFC’s proposed Tier II investment in Chola will provide capital support at a time when there is significant stress in the economy impacting the CV sector, as well as help the Company to diversify its sources of funding and to scale-up its operations in several low income states.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation