Shriram Finance raises USD 425 mn and Eur 40 mn via syndicated loan

Shriram Finance (SFL) has recently completed a significant fund-raising effort, securing USD 425 million and EUR 40 million through a syndicated term loan transaction. This marks the largest widely syndicated loan transaction for a private non-banking financial company (NBFC) from India in recent years, and it is the largest ever syndicated loan transaction by Shriram Finance.

This achievement follows closely on the heels of a previous successful transaction where SFL raised USD 404 million. The success of these transactions highlights the strong acceptability and confidence that lenders have in Shriram Finance's financial stability and business model.

The three year ECB facility was structured as a Social Loan anchored by BNP Paribas (BNPP), DBS Bank (DBS), Hongkong & Shanghai Banking Corporation (HSBC) and Sumitomo Mitsui Banking Corporation (SMBC), who were the joint Mandated Lead Arrangers & Bookrunners and Social Loan Coordinators for this facility.

 

This multi-currency deal started as USD 200 million equivalent facility with a greenshoe option. The transaction saw a bumper response from syndication market, with final lender group expanding to 16 lenders. This included banks from 4 continents panning across Europe, US, Asia (North Asia, South-East Asia, Middle east) and Africa (Mauritius). It is worth highlighting that the deal also saw new lenders who have deployed capital in an Indian corporate for the very first time, demonstrating the strong demand for marquee Indian clients in the global loan markets.

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