Shriram Finance Limited Secures USD 100 Mn Long-Term Funding from ADB
Mumbai, January 2023: Shriram Finance Limited (SFL) India’s largest retail NBFC and a part of the Shriram Group, secured long-term funding of USD 100 million from the Asian Development Bank (ADB). The USD 100 million External Commercial Borrowing (ECB) is a 5 year loan and is under SFL’s Social Finance framework.
The funds raised from ADB, a regional development bank, will enable SFL to provide credit towards the purchase of new and used vehicles throughout India. Proceeds from ADB can be used for the following: Vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles, specifically finance women entrepreneurs, cater to under-developed states of the country, and empower and promote the social and economic status of the underserved communities in India.
Besides the ADB loan, SFL has also successfully raised USD 250 mn from US Development Finance Corporation and USD 475 million through a 144A Bond from the international market during 2022, thereby continuing to diversify its funding profile and continue its objectives for Financial Inclusion.
Speaking about the fundraise, Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited said, “SFL’s success in securing international funding from ADB, a regional Development Bank is an enhancement to our strength and stability. We will finance for buying of vehicles and equipments in new and untapped markets to provide business opportunity and generate employment. This would empower more communities in semiurban and rural areas to optimize their income and to have a better quality of life”.