IFC to invest €60 million in VW India

The International Finance Corporation (IFC) will provide a loan up to €60 million from its own account and a syndicated loan up to €75 million to Volkswagen India's Plant in Pune. Volkswagen India's plant at Chakan in Pune was inaugurated recently. IFC may consider an equity or quasi-equity component within the proposed €60 million investment, according to information on IFC's Web site. IFC will also explore the possibility of offering advisory services to further develop Volkswagen's local supplier base. The Pune plant has a capacity of 1.10 lakh units a year and is being set up at a cost of €580 million, including investment in tooling for the company's suppliers.