Shriram Finance on Friday said that it has raised five-year loan of $100 million from the Asian Development Bank (ADB) through external commercial borrowing (ECB) under its social finance framework.
The funds will be used for vehicle finance for commercial purposes with BS-VI compliant vehicles and electric vehicles. The loans will be deployed specifically to finance women entrepreneurs and under-developed states.
“Shriram Finance’s success in securing international funding from ADB is an enhancement to our strength and stability. This would empower more communities in semi-urban and rural areas to optimise their income and to have a better quality of life,” said Umesh Revankar, executive vice chairman, Shriram Finance.
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Earlier this year, Shriram Transport Finance Corporation (STFC) raised $250 million from US Development Finance Corporation and $475 million through international bond market.
The Shriram Group recently concluded the merger exercise, involving amalgamation of Shriram City Union Finance, Shriram Capital and other group entities with STFC, forming into a new entity Shriram Finance. The company has a capital adequacy ratio of 23.1% as of September 30.