International Finance Corporation (IFC) said it is looking to invest $100 million in Mahindra & Mahindra Financial Services Ltd (MMFSL) and another $25 million in Mahindra Rural Housing Finance Ltd in non-convertible debentures issues by these companies.
These investments are aimed at improving access to finance for the underserved farmers and agro related small enterprises in rural and semi-urban areas; and contribute to meet the need for affordable housing.
MMFSL is a publicly listed subsidiary of Mahindra & Mahindra (M&M), India’s largest tractor and utility vehicle manufacturer. M&M holds 51.2% in MMFSL.
“Providing asset finance to agro related small & micro business will enable them expand their operations and create more employment opportunities,” IFC said in a disclosure.
MMFSL has financed over 47 lakh customers and has an asset under management of over $6 billion as on March 31.
MMFSL holds 87.5% in Mahindra Rural Housing Finance Ltd with the balance is held by National Housing Bank.
The IFC investment in the housing subsidiary will be used to provide finance for affordable housing in rural and semi-urban areas of India.