India: IFC to Offer $150 mn in Debt Funding to Piramal Capital

Apr 2019
India, April, 09 2019 - International Finance Corporation plans to make a debt investment of $150 million (Rs 1,043 crore at current exchange rate) in mortgage lender Piramal Capital & Housing Finance Ltd.

The World Bank's private-sector investment arm said in a disclosure that the proposed credit line will be in the form of senior debt with a tenor of five years.

IFC will also help Piramal Capital mobilise up to an additional $200 million (Rs 1,390.7 crore at current exchange rate) through parallel loans, from elsewhere.

The wholly-owned unit of billionaire Ajay Piramal-led Piramal Enterprises Ltd will use the loans for lending to the retail housing finance sector, IFC said.

The financial services arm caters to both wholesale and retail segments. It provides loans to the infrastructure sector as well as small and medium enterprises (SMEs).

The financial services arm’s $11 billion conglomerate is engaged in other sectors such as healthcare and pharmaceutical as well as real estate.

As on 31 December 2018, Piramal Capital had an asset base of Rs 54,000 crore ($7.7 billion) and a loan portfolio of Rs 41,700 crore ($6 billion).

Piramal Enterprises' key external shareholders include East Bridge Capital Master Fund & I Ltd (6.3%), Life Insurance Corporation of India (3.48%) and Aberdeen Global Indian Equity Ltd (1.3%). 

Source : VCCircle

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