Shriram Finance raises $468M multi-currency social loan

Shriram Finance Limited (SFL) on Monday said it has raised $468 million (about Rs 3.880 crore) in multi-currency to fund business growth.

The three-year (External Commercial Borrowing) ECB facility was structured as a social loan anchored by BNP Paribas, DBS Bank, Hongkong & Shanghai Banking Corporation (HSBC) and Sumitomo Mitsui Banking Corporation, who were the joint mandated lead arrangers and book runners and social loan coordinators for this facility, SFL said in a statement.

The fundraise comprises $425 million and 40 million euro through a syndicated term loan transaction, it said.

In line with its focus on increasing the accessibility of financial services to the unbanked and underbanked sectors, the funds raised through this social loan will be used to empower small entrepreneurs and vulnerable groups across India, it said.

This marks the largest syndicated multi-currency transaction by a private sector non-banking finance company, said Umesh Revankar, Executive Vice Chairman of Shriram Finance.

"This facility is labelled as a social loan, reflecting our commitment to social impact similar to our priority sector initiatives, with certain strict exclusions. The strong interest from the international investor community underscores the global confidence in our mission," he said.

SFL has a wide range of offerings ranging from credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal and small business loans. As one of the country's largest retail NBFCs, Shriram Finance has assets under management (AUM) of Rs 2,24,862 crore.