India’s largest NBFC-MFI CreditAccess Grameen has inked a $200 million external commercial borrowing deal with foreign banks and overseas branches of Indian banks.
It has already received commitments for $160 million from 12 banks, including 25% contribution from Taiwanese banks, 28% from banks in the Middle East and the balance from overseas branches of Indian banks. There is a green-shoe option to raise an additional $40 million, exercisable over 120 days from the date of signing of the facility agreement.
The deal was arranged by Standard Chartered Bank.
The company said it has currently drawn $100 million, and the remaining commitments shall be drawn over the coming months.
This marks the first social ECB loan in the Indian microfinance industry and the fourth from India, the company said.
“The social loan facility marks the single largest foreign borrowing transaction in our journey. Being the largest NBFC-MFI, the strength and scalability of the liability profile is paramount in our pursuit of consciously growing our loan portfolio at 20-25% CAGR to cross the Rs 50,000 crore mark in the coming four to five years,” chief financial officer Balakrishna Kamath said.