The UK government’s development finance institution, CDC Group Plc has invested about Rs 400 crore ($57 million) into an Investment and Finance Company Ltd, Cholamandalam through a 10-year masala bonds. These are special type of bonds that are issued outside India and are governed by Indian rupees.

This non-banking financial firm had issued its maiden masala bonds or unsecured, subordinated, rupee-denominated bonds with

the intention to raise Rs 400 crore Tier-II debts from the CDC group. Considering which Cholamandalam commented, “The bond issue may be listed on London Stock Exchange or any other international stock exchanges in the future.”

In December last year, the financial services firm’s board approved the issuance of equity shares worth Rs 1,000 crore through qualified institutional placement (QIP), in one or more tranches. However in May, the investment arm of World Bank - International Finance Corporation-had led a $222 million (about Rs 1,575 crore) debt investment round in Cholamandalam, marking its third investment in the NBFC.

Cholamandalam has been ruling the industry for almost four decades, offering vehicle finance constituting 74 percent of its portfolio, 21 percent business loans including loan-against-property to MSME sector loans and home loans as on September end 2019. It has more than 1,000 branches across India, with a diversified loan portfolio spanning 1.2 million customers. The firm also caters to small and medium road transport operators for new and used commercial vehicles with over 50 percent of the portfolio in low-income states.