International Finance Corporation (IFC), a member of the World Bank Group, focused exclusively on the private sector in developing countries, has plans to invest up to $35 million in paper manufacturer JK Paper Ltd, according to a VCCircle report.
IFC said in a statement that it will invest by subscribing to secured non-convertible debentures (NCDs) of the Singhania Group company.
The company will primarily use the debt funding to meet the incremental working capital needs due to the impact of the ongoing coronavirus pandemic.
JK Paper is one of India’s largest producers of office, printing, writing and specialty paper, and packaging boards.
Earlier in 2018, IFC had invested $45 million in the form of NCDs in JK Paper to help the company increase productivity at its two plants in Odisha and Gujarat, and to refinance existing debt.
The investment in JK Paper is the latest example of the Washington-headquartered IFC’s commitment to India, which is its single-largest portfolio market. Apart from its direct investments that involve both equity and debt funding, the institution also actively invests PE and VC funds.
IFC offers financial resources, technical expertise, global experience, and innovative thinking in order to help its partners overcome financial, operational, and political challenges.
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