Chennai-based non-banking finance company IFMR Capital has arranged the first issuance of Commercial Paper for Hinduja Leyland Finance Ltd. The Commercial Paper (CP) of ₹250 crore is the largest placement by IFMR Capital for any of its clients till date, the company said in a statement.

As part of its process, the company said it had conducted a detailed field diligence across various States in which Hinduja Leyland Finance (HLF) operates.

Hinduja Leyland Finance is involved in the business of vehicle financing. With operations across 20 States in India, it has assets under management at around ₹4,550 crore as of end September 2014.

This is the first CP issuance by HLF and has been subscribed to by Religare Invesco AMC and UTI AMC, a category of investors who are not very active in this space.

The company said the transaction is consistent with IFMR Capital’s mission of providing access to debt capital for institutions impacting financially excluded households and sectors.

Emphasising on the significance of the issuance in a statement, Kshama Fernandes, CEO, IFMR Capital said: “The addition of mutual funds has enabled HLF to diversify its sources of funding. CP issuance provides product diversification and can also be used as a tool for efficient treasury management.''

She added that closing the size of CP issuance for HLF demonstrated IFMR Capital’s ability to add value to larger clients by enabling them to access the debt capital markets at attractive pricing.

The statement added IFMR Capital has so far structured, arranged and co-invested in more than 200 capital market transactions. IFMR Capital has been able to grow its business and placement volumes by 133 per cent in the first three quarters of FY2015.

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