IFC to invest $100m in India's Axis Bank

According to a disclosure, IFC will subscribe to a $100 million fixed-rate infrastructure bond issued by Axis Bank.

While the group has made made a number of investments in India's financial services sector - most notably in non-banking financial companies (NBFCs) - this is understood to its first commitment to a private bank.

Axis offers a range of financial services to customers across infrastructure, agriculture and retail, working with large corporates, and micro, small and medium-sized enterprises (MSMEs). Its network includes 2,500 domestic branches - 50% of which are in rural or semi-rural areas, and 13,000 ATMs nationwide.

It also has overseas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai, Abu Dhabi and an overseas subsidiary in London. As of September, the bank had assets of around $64 billion.

"Given the high level of NPLs (non-performing loans) in the public sector banks, private sector banks are expected to play a vital role in channelling liquidity to infrastructure and affordable housing projects," IFC said in its disclosure.

"Axis Bank has traditionally been a leading financier of infrastructure and housing and the proposed project will support the bank in expanding this business and contributing to the government's priorities for economic growth."

IFC has made 14 investments in India so far this year. Its more recent transactions involved Tikona Digital Networks and Bilt Paper.

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• Topics
• Financials
• South Asia
• Expansion
• Financial Services
• India
• International Finance Corporation
• Growth capital