Shriram Finance raises over USD 306 Million from Development Financial Institutions

Shriram Finance Limited (SFL), the flagship company of the Shriram Group, has successfully secured a landmark External Commercial Borrowings (ECB) from various Multilateral and Bilateral Development Financial Institutions.

The latest facility, availed under SFL's Social Finance Framework, saw participation from leading global financial institutions, including the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), and Exim Bank of India (EXIM) with a long tenor financing. This transaction further strengthens SFL's position as a leader in offshore fundraising and underscores its strategic focus on diversifying funding sources while optimizing costs.

Expanding Financial inclusion through Strategic Alliances

SFL continues to deepen its engagement with global financial institutions to drive inclusive economic growth and sustainable development. Its collaboration with ADB, JICA, and EXIM underscores its expertise in structuring innovative funding solutions that cater to evolving market needs while empowering underserved communities. By leveraging these strategic alliances, SFL reinforces its commitment to bridging financial gaps and fostering long-term resilience in India's MSME sector.

Empowering MSMEs and Sustainable Financing

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India's economy, contributing 30% of the GDP and 45% of exports. The facility with ADB and JICA is aimed at expanding access to finance for MSMEs, with a particular focus on business loans, electric vehicles (EVs), low-emission commercial vehicles, and financing for women-owned or womenled enterprises. Additionally, SFL's partnership with EXIM will help support the niche yet vital MSME export sector while diversifying its lending portfolio into new markets.

This transaction marks another significant offshore fundraising milestone for SFL, following its landmark SACE Push facility of USD 500mn in February and the historic $1.2 billion syndication facility raised in December last year. With this latest transaction, SFL has successfully raised over USD 2.8 billion in offshore funding in the current financial year, further cementing its leadership in structured finance and sustainable funding initiatives.

Mr. Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, stated: "This transaction marks another milestone in our journey to strengthen financial inclusion and sustainable growth. By forging partnerships with esteemed global institutions like ADB, JICA, and EXIM, we are expanding our ability to empower MSMEs, support green financing, and drive economic progress. The confidence shown by these institutions reinforces our commitment to providing innovative financial solutions that create meaningful impact across communities."

ADB Country Director for India, Mio Oka, added: "This project underscores ADB's commitment to promoting financial inclusion and sustainable development in India while addressing the financing gap faced by MSMEs. By partnering with Shriram Finance Limited, we will empower MSMEs, particularly women entrepreneurs, and accelerate the transition to electric mobility-an essential step toward reducing air pollution and achieving India's climate goals."

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 economic growth and development.

Source : Equity Bulls

Keywords

ShriramFinance ECB FundRaising Multilateral Bilateral DevelopmentFinancialInstitutions ADB JICA EXIM