Shriram Finance Raises $468M in Multi-Currency Social Loan for Growth

Shriram Finance Limited (SFL) announced a significant financial milestone on Monday, securing a substantial sum of USD 468 million (approximately Rs 3,880 crore) through multi-currency funding. This strategic move is aimed at bolstering the company's business growth over the next three years. The External Commercial Borrowing (ECB) facility, which facilitated this fundraise, saw a collaborative effort from leading global financial institutions including BNP Paribas, DBS Bank, Hongkong & Shanghai Banking Corporation (HSBC), and Sumitomo Mitsui Banking Corporation. These entities served as the joint mandated lead arrangers, book runners, and coordinators for the social loan.

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The composition of the fundraise included USD 425 million and EUR 40 million, amassed through a syndicated term loan transaction. SFL's initiative aligns with its commitment to enhancing financial service accessibility for the unbanked and underbanked sectors in India. The proceeds from this social loan are earmarked for the empowerment of small entrepreneurs and vulnerable groups throughout the country.

Umesh Revankar, the executive vice chairman of Shriram Finance, highlighted the significance of this transaction. It stands as the largest syndicated multi-currency transaction executed by a private sector Non-Banking Finance Company (NBFC) in India. Revankar emphasized that this facility is not only a financial instrument but also a reflection of SFL's dedication to social impact, mirroring its priority sector initiatives. He further noted the strong interest from the international investor community as a testament to their confidence in SFL's mission.

Shriram Finance boasts a diverse portfolio of financial products and services. These offerings cater to various needs including commercial vehicle credit solutions, two-wheeler loans, car loans, home loans, gold loans, as well as personal and small business loans. As one of India's leading retail NBFCs, Shriram Finance has established a robust presence with Assets under Management (AUM) totaling Rs 2,24,862 crore.

This financial endeavor by SFL not only underscores its role as a pivotal player in India's financial landscape but also reinforces its commitment to fostering economic growth and inclusivity across the nation.