Shriram Finance secures landmark multi-currency loan of $1.28bn

Shriram Finance Limited, one of India’s largest non-banking financial companies (NBFCs), has achieved a significant milestone by securing a multi-currency syndicated loan worth $1.277 billion. This landmark transaction, facilitated through External Commercial Borrowings, marks the largest such facility ever secured by a private NBFC in India. This deal, structured to drive social impact, reaffirms the company’s leadership in accessing global capital markets and demonstrates its strategic focus on diversifying funding sources.

The multi-currency syndicated loan was raised in collaboration with 12 prominent global banks, including the International Finance Corporation, DBS Bank Ltd., and Emirates NBD Bank. The funds are diversified across USD 1.15 billion, AED 275 million (approximately $75 million), and EUR 50 million (approximately $52 million), with tenors of up to five years. This structure ensures financial stability while creating measurable social impact by supporting small entrepreneurs and vulnerable groups in India.

This multi-currency syndicated loan highlights Shriram Finance Limited’s ability to execute complex international financial transactions. The External Commercial Borrowings facility was coordinated by major institutions such as MUFG Bank, Standard Chartered Bank, and BNP Paribas, showcasing the company’s growing appeal to global lenders. This is the first time several of these institutions have participated in a Shriram Finance initiative, further expanding its international lender base.

Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, described the deal as a defining moment. He emphasized that the successful execution of this transaction reflects the confidence of international lenders in the company’s vision of fostering inclusive growth. The facility’s scale and seamless execution underscore the trust placed in Shriram Finance Limited as a pioneer in the Indian financial sector.

The achievement builds on a series of successful fundraising initiatives by Shriram Finance Limited. Earlier in 2024, the company raised $468 million through another External Commercial Borrowings facility, following a $404 million deal in 2023. These transactions have cemented Shriram Finance’s reputation as a leader in structured finance and a preferred choice for global investment.

Shriram Finance Limited’s commitment to social impact is evident in the purpose of this facility. The proceeds will be used to empower underserved communities, ensuring access to credit for small businesses and entrepreneurs. This aligns with the company’s mission of fostering financial inclusion and sustainable growth.

About Shriram Finance Limited

Shriram Finance Limited, established in 1979, has evolved into a leading financial institution in India, with an Assets Under Management (AUM) of ₹2.43 trillion. The company offers a wide range of financial services, including loans for commercial vehicles, two-wheelers, gold, homes, and small businesses. Its pan-India network of over 3,100 branches and a customer base exceeding 9 million reflects its strong market presence.

By successfully securing the largest multi-currency syndicated loan in India’s NBFC sector, Shriram Finance Limited continues to set benchmarks in innovation and financial inclusivity.