Fullerton India may issue masala bonds worth $100 million to IFC

Fullerton India Credit Company is in advanced talks for private placement of $100 million masala bonds with International Finance Corporation.

Apr 22, 2017 05:04 IST India Infoline News Service

Fullerton India Credit Company is in advanced talks for private placement of $100 million masala bonds with International Finance Corporation. Earlier in October last year, the company had raised Rs 500 crore through a private placement to Swiss Bank Credit Suisse.

This would be the second masala bond issue for the company, said a national news portal.
 
Masala bonds are rupee-denominated bonds raised outside India, which are cheaper than bank loans, but costlier than non-convertible debentures.

Through these bonds, companies tap the liquid international market for funds, said a market analyst.
 
Fullerton India has total assets under management of around $1.88 billion at the end of December, and lends to rural and urban micro and small enterprises; and finances commercial vehicles, two-wheelers and affordable housing.

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