CreditAccess Grameen Limited has successfully secured a landmark USD 100 million multi-currency syndicated social loan facility, marking a significant step in international fundraising for the Indian microfinance sector.
The facility qualifies as an External Commercial Borrowing (ECB) under the automatic route of the Reserve Bank of India and comprises Japanese Yen and United States Dollar tranches, largely sourced from banks across South Asia and the Far East.
This financing deal represents CreditAccess Grameen’s second syndicated facility led by Standard Chartered Bank, following the company’s USD 200 million ECB raised in 2023.
The loan aligns with the Social Loan Principles 2023 under the company’s Social Loan Framework, which outlines the use of proceeds, social impact goals, and governance. Sustainalytics has issued a second-party opinion confirming the framework’s impact credibility.
Initially launched with a base size of $70 million in November 2024, the offering was oversubscribed, with commitments increasing to $100 million from seven participating banks. The ability to attract lenders from countries like Japan and Korea highlights CreditAccess Grameen’s strong ESG credentials and commitment to social development. Proceeds from the facility will be deployed toward eligible social projects in line with the company’s mission to drive inclusive and sustainable growth in rural India.
Commenting on the transaction, Nilesh Dalvi, Chief Financial Officer, CreditAccess Grameen, stated that the competitive borrowing cost of the facility is comparable to domestic rates and even lower than the company’s average borrowing cost.
He emphasised that this strategic move will help the company achieve its target of 25 to 30 per cent foreign borrowings by FY28, aiding in geographic diversification, asset-liability management, and a stronger liability structure.
Surya Bagchi, Global Head – Financing Solutions at Standard Chartered Bank, noted that the bank is proud to support CreditAccess Grameen’s offshore financing needs. He added that the syndication was tailored to the company’s specific requirements and successfully attracted first-time international lenders, showcasing the bank’s deep understanding of global syndication markets.
CreditAccess Grameen, headquartered in Bengaluru, provides micro-loans to women in rural areas and operates through 2,063 branches across 423 districts in 16 states and one union territory. The company’s promoter, CreditAccess India has over a decade of experience in micro-lending and is supported by institutional investors.
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