Shriram Finance raises over USD 500mn equivalent marking one of the largest SACE covered Loan facility
Shriram Finance Limited (SFL), among the India’s largest NBFC and the flagship company of the Shriram Group, has successfully availed a landmark External Commercial Borrowing (ECB) SACE Push loan facility. This transaction represents the largest SACE, an Italian export credit agency controlled by the Ministry of Economy & Finance, Italy, covered loan facility ever raised by a NBFC in India from SACE, reinforcing SFL’s position as a leader in offshore fundraising and its ability to diversify funding sources strategically.
This 10-year long-tenor facility is backed by SACE, underlines a strong global partnership aimed at promoting the financing of Italian vehicles, both new and used, under SFL’s Social Finance Framework. The transaction saw participation from leading global financial institutions, including HSBC, Deutsche Bank, KfW IPEX-Bank, ING Bankand J.P. Morgan as Mandated Lead Arrangers and Lenders amounting to EUR 393 million and USD 100 million highlighting the strong confidence of international lenders in SFL’s creditworthiness. HSBC acted as the Sole ECA (Export Credit Agency). Coordinator and ING Bank acted as the Social Loan Coordinator for the transaction.
SFL’s collaboration with SACE reaffirms its ability to structure innovative funding solutions that align with its long-term business strategy. The transaction further demonstrates SFL’s agility in tapping offshore financing markets and expanding its lender base to support sustainable business growth.
This milestone highlights SFL's demonstrated ability to tap into international capital markets, effectively optimizing its funding costs while maintaining a diverse funding mix. With this recent transaction, SFL has successfully secured over USD 2.50 billion in offshore funding in the current financial year, the highest by any NBFC in India in structured finance and sustainable funding initiatives.Commenting on the successful fundraise, Mr. Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, stated: “This landmark transaction showcases our strong ability to navigate global financial markets and forge strategic partnerships with international lenders. Our association with SACE and leading global banks reinforces the confidence that global financial institutions have in SFL’s vision and operational strength. This facility not only enhances our ability to provide financing for Italian vehicles and equipment’s but also strengthens our commitment to financial inclusion and economic development.”
Gautam Bhansali, Head-India & South Asia of SACE stated: “Our relationship with Shriram Finance has only strengthened since 2019 when we executed our first Push Facility and since then over € 100 Mn equivalent of Italian products have been supported by them. This new unique facility is expected to further strengthen our partnership as we simultaneously support Italian excellence and Social activities of Shriram Finance in India.”
Mr. Ajay Sharma, Head of Banking, HSBC India, said, "We are delighted to work alongside SFL to arrange this landmark SACE-backed financing facility, further enhancing our relationship with them and reinforcing HSBC’s strong capabilities as a global ECA arranger. This transaction marks our fourth SACE-backed deal in India in the past 12 months, underscoring our commitment to supporting Indian clients and our strong relationship with the Italian ECA, which spans more than four decades.”
This transaction aligns with SFL’s strategic focus on expanding its lender base and accessing diversified pools of capital to support its mission of empowering small business owners and individuals with responsible financial solutions. By leveraging global partnerships, SFL continues to lead the way in mobilizing sustainable capital for India’s growth and development.
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