Shriram Finance Raises $468 Million to Boost Business Growth

Shriram Finance Limited has raised USD 468 million (Rs 3,880 crore) to fuel business expansion. The facility, structured as a social loan and backed by major banks, aims to support small entrepreneurs and vulnerable groups in India, marking a significant syndicated multi-currency transaction by a private sector NBFC.

Shriram Finance Limited (SFL) on Monday announced the successful raising of USD 468 million (about Rs 3,880 crore) to fund its business growth. The three-year External Commercial Borrowing (ECB) facility is categorized as a social loan and is anchored by BNP Paribas, DBS Bank, Hongkong & Shanghai Banking Corporation (HSBC), and Sumitomo Mitsui Banking Corporation, who played significant roles as joint mandated lead arrangers and book runners as well as social loan coordinators.

SFL's funds comprise USD 425 million and EUR 40 million through a syndicated term loan transaction. The raised capital aligns with the firm’s strategy to enhance financial services accessibility for the unbanked and underbanked sectors, empowering small entrepreneurs and vulnerable groups across India.

This transaction represents the largest syndicated multi-currency deal by a private sector Non-Banking Finance Company (NBFC) in India. Umesh Revankar, executive vice chairman of Shriram Finance, emphasized that the social loan underscores their commitment to social impact and the international investor community’s faith in their mission. Shriram Finance’s extensive offerings include loans for commercial vehicles, two-wheelers, cars, homes, gold, and personal and small business loans, reflecting their considerable Assets under Management (AUM) of Rs 2,24,862 crore.