India's Cholamandalam Investment and Finance Company Ltd said on Wednesday it would raise $222 million in debt funds in an investment round anchored by World Bank arm International Finance Corporation (IFC).
The investment comes at a time when Indian non-banking financial companies are strained for funds due to a liquidity crisis that hit the sector hard last year, prompting the so-called shadow banks to look for funding overseas.
First Abu Dhabi Bank, MUFG Bank Ltd, National Bank of Ras Al-Khaimah PJSC, and CTBC Bank Co also participated in the funding round.
The investment will help expand access to finance for micro and small borrowers, especially in the rural and semi-urban parts of India, said Cholamandalam, whose core business is providing commercial vehicle finance and loan against properties.