IFC is looking to acquire 20% stake in a Tata Capital sponsored new NBFC, which will focus on providing financing and advisory services to Indian SMEs.

The initial capitalization of this Mumbai-based NBFC may be up to $20 Mn.

The NBFC will offer debt financing and advisory services in areas such as cleaner production, energy efficiency, renewable energy, sustainable water and sanitation and waste management, environmental cleanup, carbon finance, emissions reduction, effluent disposal etc.

Tata Capital is the key sponsor for this NBFC. Other private investors also propose to participate in the project through equity investment. These private investors could include local and international institutions who will be identified shortly.

Transaction Reference: IFC

Tata Capital is a subsidiary of Tata Sons Limited and caters to the diverse needs of retail, corporate and institutional customers, directly or indirectly through its subsidiaries through consumer finance & advisory services, corporate finance which includes commercial and infrastructure finance, securities business, investment banking and private equity.

IFC is also investing $2.7 Mn (around Rs.12 Cr) in Sustainable Agro-Commercial Finance, a NBFC and a subsidiary of Jain Irrigation Systems.

Sustainable Agro will provide loans to small-scale farmers to help them install micro-irrigation systems and improve productivity.

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