Largest Syndicated Loan: Shriram Finance Secures $1.27 Billion Deal - Details

Shriram Finance has raised $1.27 billion through a syndicated external commercial borrowing (ECB) in multiple currencies. This marks the largest ECB loan secured by a private non-banking finance company (NBFC) in India. The loan, with a tenure of up to five years, was arranged by 12 leading banks, including the International Finance Corporation (IFC).

“As the largest syndicated multi-currency transaction by a private sector NBFC, this facility underscores the confidence and trust international lenders have in our vision and ability to deliver sustainable growth,” said Umesh Revankar, executive vice-chairman of Shriram Finance.

Shriram Finance: Loan Structure and Participants

The $1.27 billion facility is structured as a social loan, distributed across three currencies:
 

• $1.15 billion in USD
• 275 million in AED
• 50 million in EUR

Key lenders include DBS Bank, HSBC, MUFG Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and First Abu Dhabi Bank. Emirates NBD Bank acted as the mandated lead arranger, underwriter, and book runner. BNP Paribas, CTBC Bank, and Deutsche Bank also contributed as mandated lead arrangers.

Shriram Finance: Purpose and Significance

Shriram Finance will use the funds to empower small entrepreneurs and support vulnerable groups across India, in line with its mission of inclusive growth. The transaction highlights global confidence in high-quality Indian clients and Shriram Finance’s strategic efforts to diversify funding sources while optimizing costs.

Shriram Finance: Growth and Market Performance

Previously, Shriram Finance raised $468 million and $404 million through ECB loans in 2023. The company manages assets worth over Rs 2.43 trillion and offers diverse credit solutions, including vehicle, home, gold, personal, and small business loans.

On Wednesday, shares of Shriram Finance traded at Rs 2963.00, with a high of Rs 3034.25 and a low of Rs 2956.60 during the session. The stock’s return on equity (ROE) stood at 15.04 per cent, with a 52-week high of Rs 3652.15 and a low of Rs 1973.55.

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