Shriram Finance Ltd (SFL), a leading non-banking financial company (NBFC) in India, has successfully raised approximately USD 500 million (around ₹4,300 crore) through an External Commercial Borrowing (ECB) to support its business growth. This transaction represents the largest SACE-covered loan facility raised by an NBFC in India, further establishing SFL’s leadership in offshore fund-raising and its ability to diversify funding sources strategically.
Key Details of the Loan Facility
Loan Amount & Tenure: The facility is a 10-year-long tenor loan, backed by SACE, the Italian export credit agency controlled by Italy’s Ministry of Economy & Finance.
Partnership with SACE: The financing aims to promote the purchase of Italian vehicles, both new and used, under SFL’s Social Finance Framework.
Global Participation: The loan saw participation from prominent global financial institutions, including HSBC, Deutsche Bank, KfW IPEX-Bank, ING Bank, and J.P. Morgan, acting as Mandated Lead Arrangers and Lenders. This includes EUR 393 million and USD 100 million, reflecting strong international confidence in SFL’s creditworthiness.
Strategic Significance
This ECB marks a milestone in Shriram Finance’s funding strategy and is an important addition to the company’s ability to secure sustainable and structured finance. The association with SACE highlights the firm’s global partnerships and its commitment to funding Italian vehicles and equipment, while also reinforcing its role in financial inclusion and economic development.
SFL has now secured over USD 2.50 billion in offshore funding in the current financial year, making it the highest by any NBFC in India for structured finance and sustainable funding initiatives.
Statement from SFL’s Executive Vice Chairman
Umesh Revankar, Executive Vice Chairman of Shriram Finance, emphasized the significance of this deal, stating, “Our association with SACE and leading global banks reinforces the confidence that global financial institutions have in SFL’s vision and operational strength. This facility not only enhances our ability to provide financing for Italian vehicles and equipment but also strengthens our commitment to financial inclusion and economic development.”
Related Topics:
Jones Opens the Pipeline for New Financial Advisers
Are Financial Advisers Worth the Money? Experts Weigh In
CFPB Orders Suspension of All Operations Amid Leadership Change
