India, June 03, 2024: Shriram Finance Limited (SFL), the flagship company of Shriram Group, has recently completed a significant fund-raising effort, securing USD 425 million and EUR 40 million through a syndicated term loan transaction. This marks the largest widely syndicated loan transaction for a private non-banking financial company (NBFC) from India in recent years, and it is the largest ever syndicated loan transaction by Shriram Finance.
This achievement follows closely on the heels of a previous successful transaction where SFL raised USD 404 million. The success of these transactions highlights the strong acceptability and confidence that lenders have in Shriram Finance's financial stability and business model.
The three year ECB facility was structured as a Social Loan anchored by BNP Paribas (BNPP), DBS Bank (DBS), Hongkong & Shanghai Banking Corporation (HSBC) and Sumitomo Mitsui Banking Corporation (SMBC), who were the joint Mandated Lead Arrangers & Bookrunners and Social Loan Coordinators for this facility.
This multi-currency deal started as USD 200 million equivalent facility with a greenshoe option. The transaction saw a bumper response from the syndication market, with the final lender group expanding to 16 lenders. This included banks from 4 continents panning across Europe, US, Asia (North Asia, South-East Asia, Middle east) and Africa (Mauritius). It is worth highlighting that the deal also saw new lenders who have deployed capital in an Indian corporate for the very first time, demonstrating the strong demand for marquee Indian clients in the global loan markets.
Shriram Finance Limited has a wide range of offerings ranging from credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, personal and small business loans. As one of the country’s largest retail NBFCs, Shriram Finance has Assets under Management (AUM) of ₹2,24,862 crores. In line with its focus on increasing the accessibility of financial services to the unbanked and underbanked sectors, the funds raised through this social loan will be used to empower small entrepreneurs and vulnerable groups across India.
Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, while describing the successful issuance stated: “We are thrilled by the robust participation from lenders across geographies for our External Commercial Borrowings. This marks the largest syndicated multi-currency transaction by a private sector Non-Banking Finance Company. This facility is labelled as a Social loan, reflecting our commitment to social impact similar to our priority sector initiatives, with certain strict exclusions. The strong interest from the international investor community underscores the global confidence in our mission.”
Rajat Verma, Managing Director and Head of Institutional Banking Group at DBS Bank India, said: “DBS Bank is proud to have facilitated this landmark social loan and of playing a key role in enabling it to become the largest syndicated transaction for Shriram Finance Limited. Aligned with our focus on responsible banking, anchoring a loan of this size for Shriram Finance is a demonstration of our shared commitment to supporting social outcomes and driving positive impact. We believe these opportunities are a way for businesses to do well, by doing good and are purposeful in their intention to not only drive economic growth but also enhance financial inclusivity”
Chetan Joshi, Managing Director and Head of Debt Finance at HSBC India, said: “HSBC is delighted to have partnered with Shriram on two highly successful back to back syndicated loans. Coming close to the heels of the sole HSBC led USD 404 Million transaction in 2023, this larger dual currency loan has established Shriram as a well accepted credit story in the international loan market.”
