International Finance Corporation (IFC), the private-sector investment arm of World Bank, is planning to make a senior debt investment of Rs 975 crore (around $150 million) in non-banking financial company HDB Financial Services Ltd.
HDB Financial Services is a subsidiary of private sector lender HDFC Bank.
IFC said in a disclosure that the proposed investment will enable HDB to expand its individual, micro and small business loan portfolio in the country's low-income states.
The proposal will be placed before IFC’s board for approval on 15 June.
HDFC Bank holds 95.87% stake in HDB. The rest is held by management and key personnel associated with HDFC Bank.
Incorporated in 2008, HDB Financial Services operates through a pan-India distribution network of more than 1,160 branches across 831 cities and offers a range of loan products, both secured and unsecured.
The company also provides business process outsourcing (BPO) solutions to HDFC Bank.
As of 31 March 2018, the NBFC had an asset base of Rs 44,753.9 crore and loan portfolio of Rs 43,572.7 crore.
IFC’s investments
IFC has struck a number of deals in the financial services space this year.
Last week, in proposed to invest about Rs 130 crore ($20 million) in Kolkata-based Arohan Financial Services Pvt. Ltd via long-tenor debt.
Earlier this month, IFC proposed to invest $15 million (Rs 100 crore) in Aptus Value Housing Finance India to support financing in the affordable housing segment.
Last month, online insurance platform Coverfox completed its $22-million (Rs 144 crore) Series C funding round which was led by IFC.
Others investments this year include $49.86 million in non-banking financial company Altico Capital India and $75 million through senior financing in L&T Housing Finance, a subsidiary of L&T Finance Holdings.
