International Finance Corporation (IFC), the private-sector investment arm of the World Bank, is looking to invest up to $35 million (Rs 263 crore) in paper manufacturer JK Paper Ltd.
IFC said in a statement that it will invest by subscribing to secured non-convertible debentures (NCDs) of the Singhania Group company.
The New Delhi-headquartered company will primarily use the funds to meet the incremental working capital needs due to the impact of the ongoing coronavirus pandemic.
JK Paper is one of India's largest producers of office, printing, writing and specialty paper, and packaging boards.
In 2018, IFC had invested $45 million in the form of NCDs in JK Paper to help the company increase productivity at its two plants in Odisha and Gujarat, and to refinance existing debt.
IFC’s recent India bets
The investment in JK Paper is the latest example of the Washington-headquartered IFC’s commitment to India, which is its single-largest portfolio market. Apart from its direct investments that involve both equity and debt funding, the institution also actively invests PE and VC funds.
Last week, IFC proposed to make a debt investment of up to $100 million (around Rs 756 crore) to NBFC firm Fullerton India Credit Company Ltd (FICCL), which is owned by Singapore state investment firm Temasek.
In March, IFC plans to offer up to $54 million (around Rs 397 crore) in debt to poultry company Suguna Group.
In February, IFC said it will invest nearly $30 million in private equity-backed Future Lifestyle Fashions.
In October last year, it said that it was planning to make an equity investment of up to $20 million (around Rs 141.82 crore then) in the overseas unit of agricultural producer Maharashtra Hybrid Seed Company Ltd (Mahyco India).
In July, it took part in business-to-business marketplace Bizongo’s Series C funding round, which saw the startup valued at nearly $100 million. In the same month, the firm said it would provide $150 million in the form of a five-year senior loan to private-sector lender RBL Bank.
