Shriram Finance (SFL) 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.