Featured post

அனைவரும் எதிர்பார்க்கும் நடிகை சோனாவின்

 *அனைவரும் எதிர்பார்க்கும் நடிகை சோனாவின் சுயதரிசை கதை ‘ஸ்மோக்’ வெப்சீரியஸ்.* *முக்கிய கதாபாத்திரத்தில் நடிக்கிறார் நடிகை சோனா* தென்னிந்திய ...

Tuesday 18 September 2018

Chola issues unlisted NCDs in tenors

Chola issues unlisted NCDs in tenors 
3-5 years for INR 1056.90 crore to ADB

Cholamandalam Investment and Finance Company Limited (Chola), a leading financial services provider in India, today announced that it has issued unlisted Non-Convertible Debentures (NCDs) in tenors of 3 to 5 years for INR 1056.90 crore (USD 150 Million) to Asian Development Bank (ADB) .

ADB provides medium and longer term financing to banks, NBFCs and FIs, with focus on promoting financial inclusion in lesser developed regions, especially for undeserved and lower income customer segments towards support for creation of physical income-generating assets apart from encouraging greater gender equality and participation.

Chola – with its core strengths and solid track record, is focused on lending to the Small Road Transport Operators (SRTO) and SME borrowers, and has a pan India presence.  The inroads made by Chola in Tier IV and Tier V towns in lesser penetrated regions augurs well to meet the objectives of financial inclusion of ADB to the undeserved and lower income customer segments.  Chola’s focus on funding productive assets rather than for consumptive purposes also fulfills the criteria of ADB in extending support for creation of physical income-generating assets.  Also the strong risk management framework, corporate governance and quality of management of Chola, supported by the guidance from the Murugappa Group, has resulted in ADB choosing to work with Chola in furthering their goals of financial inclusion in India.

ADB’s assistance to Chola is composed of senior secured nonconvertible debentures of tenors from 3 to 5 years, to help finance its lending operations to SRTOs and SMEs. Half of this target under ADB’s financing will be from lagging states in India, resulting in improved economic growth prospects and employment opportunities in these areas. SRTOs engaged in logistics, distribution, and transport-related industries will be given priority and SMEs seeking loans for investment and working capital will also benefit from access to this term financing.

“Chola with its focus on funding commercial vehicles for the SRTO segment and to the SMEs is ideally suited to meet ADB’s objectives.  We look forward for a lasting relationship with ADB in furthering our goals mutually” said Mr Arun Alagappan, Executive Director of Cholamandalam Investment and Finance Company Limited.

“ADB’s financing to Chola will help ensure that SRTOs and SMEs, which are crucial to the Indian economy, have access to the necessary long-term capital that they need to continue contributing to the country’s growth and development,” said ADB Principal Investment Specialist for Private Sector Operations Mr. Anshukant Taneja. “ADB’s financing, which has been provided in the backdrop of a slowdown in credit growth in the Indian banking system, has a countercyclical effect and is expected to boost investments and employment.”

No comments:

Post a Comment