Bajaj Finance, India’s leading consumer and enterprise financing company, is looking to raise $150 million (approximately or Rs 1000 crore) from International Finance Corporation.
In a disclosure, IFC said it would subscribe to Bajaj Finance’s non convertible debentures for on-lending to micro small and medium enterprise.
IFC may also invest up to $100 million in Fullerton India Credit Company and another $50 million in Capital First.
These proposals are part of IFC’s strategic target to finance 10 million MSMEs during FY17-21.
Bajaj Finance, the Pune-based non-bank lender, has total assets under management of around $9.23 billion at the end of December with 43% of its assets being under consumer financing and 42% under SME financing. Commercial business accounts for 12% of the loan and balance 3% comes from rural sector.
Bajaj Finserv, the holding company for the financial services businesses of the Bajaj Group, owns 57.3% of Bajaj Finance, which reported 36% rise in net profit at Rs 556 crore for the third quarter to December 2016.