The Caisse de dépôt et placement du Québec is investing about US$250 million in ECL Finance Ltd., the non-banking arm of Edelweiss Financial Services.

The investment is intended to enable ECL Finance to capitalize on opportunities in the credit market and bolster the group in capturing opportunities in the non-banking financial company space, according to a press release. Currently, the business operates with a credit book of about US$4.2 billion, serving both wholesale and retail finance segments.

Read: Caisse invests in security guard software company

“We’re glad to strengthen and expand our partnership with Edelweiss Group, with whom we share a common mindset and who has one of the most innovative credit investing platforms in India,” said Michael Sabia, president and chief executive officer at the Caisse.

The pension fund’s partnership with the Edelweiss Group began in 2016 with a significant investment in Edelweiss ARC, India’s largest asset reconstruction company.

“Credit penetration in India will be the key to advancing India’s economic gains, driven by the long-term trends in democratization of credit, rising household incomes and increased consumption,” said Rashesh Shah, chairman and chief executive officer of the Edelweiss Group. “I expect this partnership to deliver tremendous value towards deepening the market and we are encouraged by this investment by [the Caisse] to partner with us on this journey.”

Read: Caisse announces financing deal with Canadian logistics services provider

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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