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.