Deal Curry Monday reported that the International Monetary Fund (IFC) is looking to acquire 20 per cent 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 million.
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, said the report.
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 that will be identified shortly, indicated the report.
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 million (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.
The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
With its near-global membership of 187 countries, the IMF is uniquely placed to help member governments take advantage of the opportunities—and manage the challenges—posed by globalization and economic development more generally.
The IMF tracks global economic trends and performance, alerts its member countries when it sees problems on the horizon, provides a forum for policy dialogue, and passes on know-how to governments on how to tackle economic difficulties.
The IMF provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty.
The Tata group comprises over 90 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries.
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