Shriram Finance Secures $1.27B Through Syndicated ECB Facility

Shriram Finance announced on Wednesday that it has successfully raised $1.27 billion through a syndicated external commercial borrowing (ECB) facility in multiple currencies. This marks the largest ECB loan ever secured by a private non-banking finance company (NBFC) in India.

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The facility, arranged by 12 prominent banks, including the International Finance Corporation (IFC), has a tenor of up to five years.

Loan Structure and Participants

The ECB is structured as a social loan, with $1.15 billion denominated in U.S. dollars, $275 million in Dirhams, and €50 million in Euros. Leading financial institutions such as DBS Bank, First Abu Dhabi Bank, HSBC, MUFG Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation were among the lenders. Emirates NBD Bank acted as the mandated lead arranger, underwriter, and book runner, while BNP Paribas, CTBC Bank, and Deutsche Bank also participated as mandated lead arrangers and book runners. Kotak Mahindra Bank contributed as a mandated lead arranger.

Significance of the Facility

Umesh Revankar, executive vice-chairman of Shriram Finance, highlighted the significance of this transaction, stating it reflects international lenders' confidence in the company's vision for sustainable growth.

The proceeds from the loan will be used to support small entrepreneurs and vulnerable groups across India, aligning with the company’s mission of inclusive growth.

Shriram Finance emphasized that the multi-currency facility showcases a rising global interest in Indian companies and enhances its lender base. Additionally, it aligns with the firm’s strategy of diversifying funding sources while optimizing costs.

Recent ECB Transactions

This transaction follows Shriram Finance's previous ECB loans, including $468 million and $404 million in 2023.

Company Profile

As India’s second-largest NBFC, Shriram Finance manages assets exceeding ₹2.43 trillion. The company provides various credit solutions, including loans for commercial vehicles, two-wheelers, cars, homes, gold, personal needs, and small businesses.