Shriram Finance Limited (SFL) has raised finances from Asian Development Bank and Japan International Cooperation Agency through loan facilities by way of external commercial borrowings of up to $150 million each, and Export-Import Bank of India through a rupee term loan of an amount of ₹50 crore.
TT&A acted as the Indian Law counsel for Asian Development Bank, JICA and EXIM Bank on this financing deal.
The transaction team consisted of Ambarish Mohanty (Partner), Ankita Mandal (Managing Associate) and Daksh Middha (Associate).
Watson Farley & Williams acted as the English Law counsel for Asian Development Bank, JICA and EXIM Bank on this financing deal.
Wadia Ghandy & Co represented Shriram Finance on this transaction.
This is a part of a larger fundraise, whereby SFL has raised a total of $306 million from various multilateral and bilateral development financial institutions, including the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the Export-Import Bank of India (EXIM). This funding, obtained under SFL's Social Finance Framework, aims to enhance financial inclusion and support micro, small, and medium enterprises (MSMEs) with a focus on business loans and for financing electric vehicles (EVs) and low-emission commercial vehicles for business purposes.
The proceeds will also be advanced to women-owned MSMEs and those in lagging states and to by the Borrower to extend business loans or to finance the purchase of vehicles by MSMEs involved in agriculture- and food-linked transportation.
This deal marks JICA’s first co-financing project in India with Exim and it is the first time that three financial institutions viz. Exim Bank, Asian Development Bank and JICA have come together to finance a private sector deal in India.
Additionally, in December 2022, SFL secured a $100 million, five-year loan from ADB to provide credit for the purchase of new and used vehicles, with a focus on financing BS VI compliant and electric vehicles, as well as supporting women entrepreneurs and underserved communities.
SFL is one of India’s largest non-banking financial companies (NBFCs), specializing in retail and small business lending. A part of the Shriram Group, the company was formed through the merger of Shriram Transport Finance, Shriram City Union Finance, and Shriram Capital. It provides a wide range of financial products, including vehicle loans, small business loans, gold loans, and personal loans, catering primarily to underserved and unbanked segments in semi-urban and rural areas.
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