Cholamandalam Finance raises INR 4 billion Tier-II debt from CDC Group

This is CIFCL’s maiden Masala Bond issue which may be listed on London Stock Exchange or any other international stock exchanges in future.

Incorporated in 1978, CIFCL offers vehicle finance, business and home loans. It has more than 1,000 branches across India, with a diversified loan portfolio spanning 1.2 million customers.

Arun Alagappan, Managing Director of CIFCL, said, "CDC and CIFCL have joined hands to address the business credit requirements of small and medium road transport operators and MSME customers, thereby enabling them ‘Enter a better life’. CDC’s investment in CIFCL’s Masala Bonds will support the extension of loans to driver-turned-owners and micro and small enterprises in underserved rural and semi-urban areas of India. We look forward to working with CDC in promoting the economic and social well-being of our customers.”

Srini Nagarajan, CDC’s Managing Director and Head of Asia, said, "CDC’s commitment to CIFCL demonstrates our value as a Development Financial Institution with long-term patient capital. Our investment will enable CIFCL to extend loans to small vehicle owners and facilitate availability of credit to rural and semi-urban markets and support the Company with subordinated-debt in this tight liquidity environment. CDC has been investing in India for over 30 years and we look forward to the start of a productive long-term relationship with CIFCL and the wider Murugappa Group.”