The International Finance Corporation (IFC) has agreed to lend US$60mn to DCM Shriram Consolidated Ltd (DSCL), an Indian manufacturing and agribusiness company.

The capital will be used to part finance a US$74.2mn capacity expansion project, and will come in the form of an A loan from the IFC’s own balance sheet.

DSCL is an integrated company whose business lines include plastics, chemicals and agribusiness products, including fertiliser. The finance will be used to expand its PVC resin and carbide capacities. DSCL will replace a chlor-alkali plant and add a 40MW power plant, as well as expand its retail outlets around rural India.

The company is New Delhi-based, but most of the investment in projects will be in Rajasthan. It is hoped that the IFC’s involvement will encourage commercial lenders to consider involvement with DSCL.

In a statement, the IFC says: “The average maturity of the A loan proposed by [the] IFC would be about three years higher than the average maturity of the company’s existing loans. Therefore, the strengthening of the company’s capital structure will be a direct long-term benefit from[the] IFC’s involvement. [The] IFC’s involvement is also expected to encourage domestic lenders to provide long-term funds for the company’s present and future projects.”