WASHINGTON, D.C., July 6 -- The International Finance Corporation (IFC) has signed an agreement to invest US$20 million in SRF Finance Limited, a general financial services company based in New Delhi, India. The company will use the investment to provide long-term leases to small and medium-sized businesses and to expand and diversify its operations. IFC's financing consists of a US$15 million loan for its own account and an equity investment of up to US$5 million for about 9 percent of the share capital of the company. SRF Finance Limited is owned by SRF Limited, an industrial firm, which is part of the DCM group. Although the main business of SRF Finance Limited is asset financing, it also provides trade financing, deposit taking, and merchant banking services. Its main clients are entrepreneur-managed and medium-sized companies. "Long-term leasing is an effective way to channel funds to small and medium enterprises," said Mr. Rashad Kaldany, Division Manager, Capitals Markets in IFC's Asia Department. "IFC
's involvement will also assist the company to expand its merchant banking operations and make them more international." IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
