Shriram Finance Limited (SFL), a retail NBFC and part of the Shriram Group, has secured long-term funding of $100 million from the Asian Development Bank (ADB).
The $100 million external commercial borrowing (ECB) is a 5-year loan and is under SFL’s Social Finance framework.
The funds will enable SFL to provide credit towards the purchase of new and used vehicles throughout India.
Proceeds from ADB will be be used to finance BS VI compliant vehicles, electric vehicles, women entrepreneurs, to cater to under-developed States, and empower and promote the social and economic status of the underserved communities in India.
On the fund raise, Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited said, “SFL’s success in securing international funding from ADB 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 optimise their income and to have a better quality of life”.
Besides the ADB loan, SFL has raised $250 million from US Development Finance Corporation and $475 million through a 144A Bond from the international market during 2022, thereby continuing to diversify its funding profile.