International Finance Corporation (IFC) plans to invest $ 100 million in the secured debt of Hero Fincorp Ltd belongs to the Hero group.
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Hero Fincorp mainly finances the purchase of two-wheelers, loans to micro, small and medium-sized enterprises (MSMEs), personal loans, used car loans and business loans, the company said. IFC.
According to IFC, the proposed investment will allow Hero Fincorp to expand its loan portfolio across its verticals.
The company will also deploy three times its loan amount, through its own resources and other funding sources, to the same target beneficiaries over the next three years, IFC added.
According to IFC, the composition of Hero Fincorp’s consolidated loan portfolio includes financing of two-wheelers (37%), financing of used cars (7%), personal loans (11%), home loans (6 %), loans to MSMEs. (21 percent) and business loans (18 percent).
The shareholders of Hero Fincorp include Hero MotorCorp Limited (41.2%), investment companies of the Munjal family (38.3%), Credit Suisse (2%), Chrys Capital (10%) and Apis Growth (2 %) and HFCL dealers / employees (6.5 percent).