Microfinance institution Satin Creditcare raises $100M social loan
The loan was arranged by Standard Chartered Bank, which also participated in the funding from the SCB Gift City branch. Other participants included six Sri Lankan banks.
Microfinance institution Satin Creditcare Network Limited (SCNL) has raised its first syndicated social term loan of $100 million via external commercial borrowing under the automatic route of the Reserve Bank of India.
The loan was arranged by Standard Chartered Bank, which also participated in the funding from the SCB Gift City branch. Other participants included six Sri Lankan banks: Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank.
"Securing $100 million from new lenders, notably prominent Sri Lankan banks, amid challenging times highlights our strong governance, sustainable growth, and financial resilience," said HP Singh, Chairman-cum-Managing Director of Satin Creditcare Network Limited, in a statement.
"Furthermore, this advancement enables us to not only diversify our source of funds but also establish a strong, sustained presence in the international market," he added.
The social funding will be used to expand access to financial services in India’s underbanked regions, particularly for rural women and marginalised communities.
The transaction includes a $25-million greenshoe option. Under the automatic route of the RBI, foreign direct investment (FDI) in India and certain types of overseas direct investment (ODI) by Indian entities can be made without prior approval from the RBI or the government.
The agreement, signed in February, was disbursed on March 12 and is structured for a tenure of three years and three months, benchmarked to the three-month Term Secured Overnight Financing Rate.
With a presence across 29 states and around 90,000 villages, Satin Creditcare has evolved beyond microfinance, offering loans to micro, small, and medium enterprises (MSMEs) and affordable housing solutions. Its subsidiaries, including Satin Housing Finance and Satin Finserv, complement the company's broader financial inclusion goals.
In August last year, the company launched Satin Technologies Limited to develop AI-driven fintech solutions.
Edited by Swetha Kannan