Shriram Finance (SFL), the flagship company of the Shriram Group raised $1.277 billion in multiple currencies, including dollar, euro, and dhiram (AED), through a external commercial borrowing (ECB) loan transaction.
The deal was executed in partnership with 12 leading banks, including development institutions such as the International Finance Corporation. This is the largest syndicated ECB loan ever secured by an Indian private non-banking financial company (NBFC), said the press release. The current External Commercial Borrowings (ECB) facility was structured as a social loan, with $1,150 million, AED 275 million (USD 75mn equivalent) and Euro 50 million (USD 52million equivalent).
The loan will be used to empower small entrepreneurs and support vulnerable groups across India.
“This landmark transaction is a defining moment for Shriram Finance. It not only highlights our ability to navigate the complexities of global financial markets but also reinforces our commitment to creating a meaningful social impact. 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.
Kotak Mahindra Bank acted as mandated lead arranger for the facility. Apart from Kotak Mahindra Bank, banks and global financial institutions such as DBS Bank, First Abu Dhabi Bank, HSBC, International Finance Corporation, MUFG Bank, Standard Chartered Bank, SMBC acted as global coordinators. While, Emirates NBD Bank acted as mandated lead arranger, underwriter, and bookrunner, while BNP Paribas, CTBC Bank, and Deutsche Bank contributed as mandated lead arrangers and bookrunners.
Earlier this year, SFL secured $468 million, following another $ 404 million in 2023 through ECB loans. As of September 30, the total assets under management of Shriram Finance are Rs 2.43 lakh crore.