Piramal Finance secures $350 million from IFC & ADB

Piramal Finance

• Piramal Finance raised $350 million in debt from IFC and ADB for expansion
• Funds to support affordable housing, MSME credit, and women entrepreneurs
• Company targets $500 million total DFI debt by FY26 and $40,000 crore in FY27

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In a significant milestone after its relisting in the bourses as Piramal Finance on November 7, 2025, the company has closed in a debt capital raise of $350 million from global development finance institutions (DFIs) - International Finance Corporation (IFC) and Asian Development Bank (ADB).

The retail focused diversified lender is said to have mopped up $200 million from IFC and rest from ADB. Sources indicate that talks are underway to raise another $150 million from a DFI in the coming weeks, which would take the tally of debt raised from multilateral agencies to $500 million by end of FY26.

The fund raise, which is said to have been done largely in-house by the lender, marks the first debt capital efforts in the current fiscal. "India became so much better than the international markets this year in terms of pricing that the company did not get an advantage in raising oversees debt. With the rates turning favourable in the recent times, foreign debt has become attractive again," said a senior official who was part of the fund raise and didn't want to be named.

To put things in perspective, the landed cost, that is cost of debt plus hedging cost of the $350 million debt was in the ballpark of 8-8.5 percent. For a tenure of five years, sources indicate that in terms of pricing, foreign debt from DFIs is better than the domestic market at this juncture.

"Further domestic market offers only three-year debt," the official added.

The capital will be deployed to expand access to affordable housing finance, MSME credit, and lending for women borrowers and entrepreneurs, with a focus on Tier 2 and Tier 3 markets.

Piramal Finance has drawn up a plan to raise RS 40,000 crore of debt in FY27. The company will continue with its efforts to source funding from DFIs in the upcoming fiscal as well, though much would depend on the interest rate environment. "The target is to raise $500 million – $1 billion of funding from overseas market," he said.

As part of its diversification strategy in FY25, Piramal Finance raised $815 million as external commercial borrowings (ECBs)—comprising $450 million through US dollar bond issuance and $365 million though syndicated bank loans. ECBs now account for about 9 percent of Piramal Finance's total borrowings. Recently, CRISIL assigned 'AA+/Stable' rating to the company's domestic debt instruments.

Piramal Finance serves over 5.2 million customers across 13,000 plus locations through 517 branches in 428 cities, with assets under management (AUM) of Rs 91,477 crore as of September 30, 2025. Retail loans contribute over 82 percent of its loan book.