International Finance Corporation (IFC), the private sector investment arm of the World Bank, may put in up to Rs 450 crore ($73.6 million) in Mumbai-based Fullerton India Credit Company Ltd (FICCL), a financial services firm owned by Singapore’s sovereign wealth fund Temasek, it said on Tuesday.
IFC seeks to invest through subscription of secured non-convertible debentures (NCD) that would be rated, listed and tradable on the Bombay Stock Exchange.
FICCL is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Ltd., which in turn is a wholly owned subsidiary of Temasek Holdings Pte. Ltd., Singapore.
FICCL focuses on rural and urban micro lending and also caters to mid-sized SMEs. As of March 31, 2014, FICCL had total assets under management of around $1 billion and has 397 branches across India. The company has served more than 1.1 million customers to date.
The lending profile of the company is a mix of urban microfinance (48 per cent), rural microfinance (16 per cent), mortgages (21 per cent), SMEs and emerging corporate lending (10 per cent) and MSMEs through vehicle finance (5 per cent).
Fullerton Financial has 10 operating entities located across eight countries in Asia which provide banking and financial services over 6 million customers. It is largely focused on micro finance and retail banking business.
(Edited by Joby Puthuparampil Johnson)