CreditAccess Grameen Secures Landmark USD 100 Million Multi-Currency Syndicated Social Loan Facility

CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770, 'CA Grameen', or the 'Company'), the country's largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), has secured a USD 100 million multi-currency syndicated social loan facility, qualifying as an ECB under the automatic route of the Reserve Bank of India (RBI). This ECB facility is the first of its kind in India's microfinance sector, comprising Japanese Yen (JPY) and United States Dollar (USD) currencies, predominantly raised from banks in South Asia and the Far East.

This transaction marks the second syndicated loan facility led by Standard Chartered Bank for the Company and builds on the strong track record in international borrowings. Standard Chartered Bank previously acted as the Sole Mandated Lead Arranger and Bookrunner for the Company's landmark USD 200 million syndicated ECB in 2023. The social loan shall adhere to CA Grameen's Social Loan Framework, which aligns with the Social Loan Principles 2023, stipulating the use of proceeds, social development goals, and governance, according to the Loan Market Association. Sustainalytics has provided a second-party opinion validating the credibility and impact of the Framework.

The facility was initially launched for a base size of USD 70 million in November 2024 and achieved an oversubscription, resulting in commitments being upsized to USD 100 million from 7 banks. CA Grameen's ability to raise international financing, especially debt from Korean and Japanese lenders, reflects its strong ESG credentials and impact-driven track record. The proceeds from this facility will be directed toward eligible social projects, supporting CA Grameen's mission of driving equitable and sustainable progress.

Commenting on the achievement, Mr. Nilesh Dalvi, Chief Financial Officer, CreditAccess Grameen, remarked, "It is deeply affirming to close our second syndicated social loan facility, and notably, the first in a multi-currency form, amounting to USD 100 million. The all-in borrowing cost of this transaction is highly competitive, comparable to domestic borrowing rates, and lower than our average cost of borrowing. We are confident of building on this momentum towards our dedicated target of 25-30% foreign borrowings by FY28 to achieve geographic diversification, enhanced ALM position, and robust liability profile."

Sharing their views, Mr. Surya Bagchi, Global Head - Financing Solutions, Standard Chartered Bank, said, "We are proud to once again partner with CA Grameen in supporting its strategic offshore financing requirements, and deliver another landmark transaction. The syndicated term loan was structured to meet their bespoke requirements and our well-crafted, intensive syndication process enabled us to successfully complete bookbuilding using first-time lenders to CA Grameen - a testament to our deep understanding of the international syndication markets."

Shares of CREDITACCESS GRAMEEN LIMITED was last trading in BSE at Rs. 1205.25 as compared to the previous close of Rs. 1199.55. The total number of shares traded during the day was 9667 in over 665 trades.

The stock hit an intraday high of Rs. 1235.70 and intraday low of 1200.05. The net turnover during the day was Rs. 11727881.00.

Source : Equity Bulls

Keywords

CREDITACCESSGRAMEEN INE741K01010 NBFC SocialLoanFacility