Piramal Finance, a non-banking finance company, recently gathered Rs 2,300 crore through external commercial borrowing (ECB), as shared in their Thursday announcement.
The funding drew enthusiastic support from four global banks like Abu Dhabi Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation (SMBC), and Hongkong and Shanghai Banking Corporation (HSBC).
Spanning three years, this fully hedged facility shields against currency and interest rate fluctuations, according to the press release, and even offers a $300 million greenshoe option for extra flexibility.
This year alone, Piramal Finance has pulled in $815 million in FY25, fueling its dreams of expansion with a personal touch.
“As we expand further into semi-urban and developing cities, our focus remains on enhancing access to affordable credit for underserved communities,” said Jairam Sridharan, managing director, Piramal Finance. “Over the next 2–3 years, we aim to source 10–12 per cent of our borrowings from international markets, providing global investors an opportunity to participate in India’s growth story,” he added.
The fresh funds are set to help Piramal Finance grow its lending efforts, with a heartfelt focus on affordable housing and bringing financial access to families in smaller Tier-II and Tier-III cities.
Back in November 2023, the Reserve Bank of India shook things up by raising risk weights on bank loans to non-banking finance companies (NBFCs), nudging these shadow banks to think beyond their usual reliance on bank funding. This change lit a spark, pushing NBFCs to explore new paths like domestic and international bond markets. As a result, big names like Shriram Finance, Manappuram Finance, Muthoot Finance, and Tata Capital have ventured into overseas markets to fuel their ambitions in FY25. The regulator eased the risk weights again by late February, with the shift kicking in from April 1, offering a bit of breathing room.
