Shriram Fin raises $468 mn in multi-currency social loan

Its executive vice-chairman Umesh Revankar told TNIE in a recent interview that he expected 15% growth in fresh loan sales this fiscal.
Representative Image
Representative Image

MUMBAI: Shriram Finance, the largest vehicle funding-focused non-bank, has raised $468 million in multi-currency social loan from overseas lenders, making it the largest-ever syndicated debt external commercial borrowing by a domestic non-bank.

In a statement on Monday, the Shriram group flagship said the syndicated term loan includes a 425 million in USD and 40 million in euros, and is its largest syndicated loan transaction. Earlier it had raised $404 million.

The three-year forex laon facility is structured as a social loan and has been anchored by the French lender BNP Paribas, the Singaporean lender DBS Bank, the British banking major Hongkong & Shanghai Banking Corporation and the Japanese bank Sumitomo Mitsui Banking Corporation.

This base amount of this multi-currency deal was $200 million with a green-shoe option but since the transaction had a bumper response from syndication market, the final lender group expanded to 16 lenders from across the world-- Europe, the US, North Asia, Southeast Asia, the Middle East and Mauritius--offering $468 million equivalent, it said.

Shriram Finance offers commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, personal and small business loans. As of march 2024 its loan book stood at Rs 2,24,862 crore. Its executive vice-chairman Umesh Revankar told TNIE in a recent interview that he expected 15% growth in fresh loan sales this fiscal.

“Being a social loan this reflects our commitment to social impact similar to our priority sector initiatives, with certain strict exclusions,” Revankar siad.

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