Shriram Finance raises $500m in ECB backed by Italian Exim bank

MUMBAI: Shriram Finance, the largest non-bank lender in terms of loan book and the flagship of the Chennai-based Shriram Group, has raised a over $500 million in external commercial borrowing from SACE, the Italian export credit agency under its finance ministry.

This 10-year loan represents the largest SACE-covered loan facility ever raised by a NBFC from India, the company said in a statement, which added that the money will be used to finance Italian vehicles, both new and used, under Shriram Finance’s social finance framework.

The transaction saw participation from leading global financial institutions, including HSBC, Deutsche Bank, KfW Ipex-Bank, ING Bank and JP Morgan as mandated lead arrangers and lenders amounting to 393 million euros and $100 million respectively.