New Delhi: Non-banking financial company Shriram Finance Ltd. on Friday said that it has secured a long-term funding of $100 million from Asian Development Bank (ADB) to finance its purchase of new and used vehicles across India.
The five-year external commercial borrowing (ECB) loan is under SFL’s social finance framework. The fund will enable SFL to provide credit for the purchase of new and used vehicles throughout India.
“Proceeds from ADB can be used to finance the purchase of BS VI compliant and electric vehicles, specifically by women entrepreneurs, cater to under-developed states of the country, and improve the status of underserved communities in India,” the company said in a statement.
Besides the ADB loan, SFL has also successfully raised $250 million from the US Development Finance Corp. and $475 million through a 144A Bond from the international market during 2022, diversifying its funding profile and continuing its objectives for financial inclusion.
“SFL’s success in securing international funding from ADB, a regional development bank, is an enhancement to our strength and stability. We will finance the buying of vehicles and equipment in new and untapped markets to provide business opportunities and generate employment. This would empower more communities in semi urban and rural areas to optimize their income and to have a better quality of life,” said Umesh Revankar, executive vice chairman, Shriram Finance.
On Friday, shares of the company ended 5.2% higher at ₹1,379.80 apiece on the BSE.
For the quarter ended September, the company posted a promoter shareholding of 29.37% and a public stake of 70.63%. Year to date, the stock has rallied 3.65%.
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