Satin Creditcare Network Secures $100 Million Syndicated Social Loan

Microlender Satin Creditcare Network Ltd has raised a USD 100 million loan in its first syndicated social loan from Standard Chartered Bank and Sri Lankan lenders. The funds come amid challenges in the microfinance sector and are aimed at enhancing financial services and economic growth in underbanked regions.

On Thursday, Satin Creditcare Network Ltd (SCNL), a prominent microlender, announced achieving a significant financial milestone by securing a USD 100 million loan in a syndicated social loan arrangement. This funding effort was backed by Standard Chartered Bank's arm and a coalition of six reputable Sri Lankan lenders.

Marking SCNL's inaugural venture into syndicated social loans, the USD 100 million (approximately Rs 870 crore) raised through external commercial borrowing, underscores the company's commitment to sustainable growth and robust governance. SCNL's chairman and managing director, H P Singh, emphasized the pivotal role of sound financial resilience in securing this deal.

The loan, designed to have a tenor of three years, is priced against the 3-month Term SOFR and is earmarked to enhance access to financial services, stimulate economic engagement, and support developmental growth in underserved regions. This financial endeavor is timely, given the microfinance sector's current challenges including rising non-performing assets and elevated borrower leverage.

(With inputs from agencies.)