Shriram Finance Raises $468 Million To Empower Small Entrepreneurs

Shriram Finance Limited has raised USD 468 million to support business growth and empower small entrepreneurs. The multi-currency social loan, consisting of USD 425 million and EUR 40 million, marks the largest syndicated transaction by a private sector NBFC in India, highlighting global investor confidence.

Shriram Finance Limited (SFL) has secured a substantial USD 468 million in multi-currency funding aimed at business expansion and the empowerment of small entrepreneurs.

The three-year External Commercial Borrowing (ECB) facility, structured as a social loan, saw participation from heavyweight financial institutions such as BNP Paribas, DBS Bank, Hongkong & Shanghai Banking Corporation (HSBC), and Sumitomo Mitsui Banking Corporation. These institutions acted as joint mandated lead arrangers and book runners, as well as social loan coordinators.

The fund consists of USD 425 million and EUR 40 million through a syndicated term loan transaction. SFL plans to use the funds to extend financial services to unbanked and underbanked sectors in India.

According to Umesh Revankar, executive vice chairman of Shriram Finance, this transaction is the largest syndicated multi-currency deal by a non-banking financial company in India's private sector. The initiative underscores SFL's commitment to social impact and has garnered strong interest from international investors.

SFL offers a diverse portfolio including loans for commercial vehicles, two-wheelers, cars, homes, gold, personal needs, and small businesses. With an Assets under Management (AUM) of Rs 2,24,862 crore, SFL stands as one of the largest retail NBFCs in the country.

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