<article>The International Finance Corporation (IFC), a member of the World Bank Group, is mulling a proposal to extend debt funding of up to $75 million to Mahindra &amp; Mahindra Financial Services Limited, according to a disclosure.</article>

The International Finance Corporation (IFC), a member of the World Bank Group, is mulling a proposal to extend debt funding of up to $75 million to Mahindra &amp; Mahindra Financial Services Limited, according to a disclosure.
The three-year senior, secured funding will help the Mumbai-headquartered non-banking financial company (NBFC) beef up its lending programme and support micro, small and medium enterprises (MSMEs) in India focused on agriculture.
Mahindra &amp; Mahindra Financial Services will use the proceeds to fund companies that plan to invest in agricultural equipment, utility and commercial vehicles, IFC said in its disclosure. The deal is currently awaiting approval from government agencies.
It is understood that at least 50 per cent of IFC’s loan amount will be earmarked towards women-owned businesses, while the remaining amount will be used to facilitate growth of agriculture-related businesses in low-income states of India.
Mahindra &amp; Mahindra has agreed to allocate three times IFC&#8217;s loan amount from its own balance sheet or other sources of funds to lend to the MSME segment.
Mahindra &amp; Mahindra Financial Services, the financial services arm of the Mahindra and Mahindra group, is a rural India-focused NBFC and is one of the leading tractor financiers in India. Apart from vehicle and tractor loans, the NBFC also provides SME loans as well as fixed deposits to businesses.
As of December 31, 2018, Mahindra &amp; Mahindra Financial Services&#8217; AUM stood at $8.3 billion and equity at $1.5 billion. IFC is expected to mobilize additional funding from other investors for the project.
In India, IFC has so far invested in nearly 400 companies, providing almost $15 billion in financing from its own account and mobilisation from external resources. Per information available on its website, IFC’s committed portfolio in India as of June 2018 stood at $6 billion.
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At least 50 per cent of IFC’s loan amount will be earmarked towards women-owned businesses in the agriculture sector.

IFC mulls extending $75m debt financing to Indian NBFC

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IFC mulls extending $75m debt financing to Indian NBFC

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