Bajaj Finance to receive $150M debt investment from World Bank’s IFC
Non-bank lender, Bajaj Finance Limited, announced that it has received a debt investment of $150 million from World Bank’s International Finance Corporation (IFC). This marks International Finance Corporation’s third funding deal with the consumer finance company.
The loan is approved for five years to help micro, small and medium enterprises (MSME). Bajaj Finance will direct the triple of its IFC’s loan towards the MSME section, therefore facilitating combined funding of $600 million towards MSME.
In the year 2019, Bajaj Finance received an investment from the World Bank for lending to SMEs. IFC has been a partner with the Bajaj group Non-banking Financial Company (NBFC) since 2017. The Bajaj Group holds 56.12% in Bajaj Finance through Bajaj Finserv Ltd., while Bajaj Finserv owns 52.74% of Bajaj Finance currently, and Singapore’s GIC holds a stake of around 4.29%.
Bajaj Finance was launched in 1987 in Pune to finance retail buyers of two-wheelers produced by group company Bajaj Auto. Today it is the third-largest NBFC in India with a $22.3 billion asset base as of 2020. It has 1 Lakh distribution points, with a customer base of 46 million. Previously in April, it offered to invest $100 million in secured debt in two-wheeler financier Hero Fincorp Ltd.
The MSME sector has been the worst affected by the pandemic. The latest development would greatly help these businesses to sustain themselves in these difficult times.Shishir Gupta, Founder and CEO, StartupLanes
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