IFC to offer debt funding of up to $100m to India’s Tata Motors Finance

IFC/World Bank HQ. Photo: IFC

International Finance Corporation (IFC), a member of the World Bank Group, is weighing a proposal to offer debt funding of up to $100 million to Mumbai-headquartered Tata Motors Finance Ltd, according to a disclosure.

The proposed investment – which comprises senior, secured funding of up to five years – will be used by the non-banking financial company (NBFC) to support small and medium enterprises in Low Income States (LIS) in India to purchase commercial vehicles.

The funding – once approved – will be routed through either the external commercial borrowings route or by subscribing to non-convertible debentures issued by the company, the disclosure further stated.

Tata Motors Finance is one of the pioneers of vehicle financing in India and is engaged in the business of financing the entire range of Tata Motors manufactured commercial vehicles and passenger cars since its inception in 1957.

Tata Motors Finance and Tata Motors Finance Solutions are NBFC subsidiaries of TMF Holdings Limited (TMFHL), which in turn is an investment company owned by Tata Motors Ltd. Tata Motors Finance has a strong footprint across India and operates through its network of over 270 branches, in addition to Tata Motors’ dealer outlets. As on March 31, 2019, its assets under management stood at around Rs 31,800 crore.

According to the current disclosure made by IFC, the company will now match the investment of $100 million with $300 million from other sources of funding to create a total pool of $400 million for financing commercial vehicle purchases by entrepreneurs in LIS.

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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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.