MUMBAI : Shriram Transport Finance Co. Ltd on Thursday said it aims to raise $200 million from International Finance Corp. (IFC) to fund the purchase of commercial vehicles and lending to micro, small and medium enterprises (MSMEs).

Around $100 million will be invested from IFC’s own account, while the rest from “like-minded partners", according to the deal.

In a press release, the company said the first tranche of $82 million has already been disbursed, of which half was from the World Bank’s investment arm.

“The deal uses a unique securitization structure to mitigate foreign exchange risks and attract patient capital from pension funds, insurance firms and foreign institutional investors," said the company in a press release.

The proceeds will be used for lending to small road transport operators and MSMEs in rural and semi-urban areas in low-income states.

In 2016, IFC had invested in Shriram Transport to help expand its MSME loan portfolio for low-income states.

In 2017, IFC invested in the company’s first offshore, rupee-denominated masala bonds, to further diversification of its funding sources.

For the quarter ended 30 June, the non-banking financial company reported nearly 11% rise in its net profit to 634.25 crore, compared with 572.90 crore during the corresponding period of 2018-19.

Net interest income for the quarter increased by 7.625% to 1,961.74 crore, as against 1,822.89 crore in the year-ago period.