Shriram Housing Finance raises $50 million through external commercial borrowing route

Funds from the ECB will be used for financing affordable housing in India.

Moneycontrol News

July 15, 2023 / 11:55 IST

HFL has raised the ECB for a three-year tenure, for 200 basis points over the Secured Overnight Financing Rate.

Shriram Housing Finance Limited (SHFL) has raised $50 million via its maiden external commercial borrowing (ECB), the company said on July 10.

Funds from the ECB will be used for the financing of affordable housing in India.

SHFL has raised the ECB for a three-year tenure, for 200 basis points over the SOFR (Secured Overnight Financing Rate).

“The maiden ECB for SHFL unlocks a new avenue for us going ahead to raise funds internationally. We have raised the $50 million at a competitive cost and it will help us manage our cost of fund levels. SHFL has a superior execution track record having scaled up while maintaining top-notch asset quality and thus investor appetite is high," GS Agarwal, CFO of Shriram Housing Finance said.

Currently, the company has financed 1.36 lakh housing units and has a gross loan book of Rs 9,000 crore as of June 2023. The company has maintained an accelerated growth momentum with AUM growing 44 percent CAGR over the last four years.