Shriram Finance raises $1.27 bn in multi-currency syndicated loan

It's the largest syndicated multi-currency transaction by a private sector NBFC, says company

Shriram Finance said on Wednesday it has raised $1.27 billion through a syndicated external commercial borrowing (ECB) in various currencies, making it the largest such loan secured by a domestic private non-banking finance company (NBFC).

 

The loan was arranged by 12 leading banks, including development institution International Finance Corporation (IFC), and has a tenor of up to five years.

 

The ECB facility is structured as a social loan. Of the total amount, 1.15 billion is denominated in United States dollar, 275 million in Dirhams, and 50 million in Euros.

 

The lenders include DBS Bank, First Abu Dhabi Bank, HSBC, MUFG Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation. Separately, Emirates NBD Bank acted as mandated lead arranger, underwriter and book runner. BNP Paribas, CTBC Bank and Deutsche Bank contributed as mandated lead arrangers and book runners. Kotak Mahindra Bank acted as mandated lead arranger.

 

“As the largest syndicated multi-currency transaction by a private sector NBFC, this facility underscores the confidence and trust that international lenders have in our vision, mission, and ability to deliver sustainable growth,” said Umesh Revankar, executive vice-chairman of Shriram Finance, in a statement.

 

Proceeds from the social loan will be used to "empower" small entrepreneurs and support vulnerable groups across India, in line with the company’s mission of inclusive growth, said Shriram Finance.

 

The multi-currency facility highlights the growing global demand for high-quality Indian clients and marks a significant expansion in the company’s lender base, it said. “It also aligns with Shriram Finance’s strategic goal of diversifying its funding sources while maintaining cost efficiency.”

 

Previously, Shriram Finance secured $468 million, following another $404 million in 2023 through ECB loans.

 

Shriram Finance is India's second largest NBFC, having assets under management of more than Rs 2.43 trillion. It offers a range of credit solutions, including commercial vehicle loans, two-wheeler loans, car loans, home loans, gold loans, personal loans and small business loans.