Key Transaction Details
CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770) has signed a USD 175 million syndicated social loan facility. The facility qualifies as External Commercial Borrowing (ECB) under the automatic route of the Reserve Bank of India (RBI).
Parties Involved
Standard Chartered Bank and DBS Bank acted as Joint Mandated Lead Arrangers and Bookrunners. The transaction secured participation from ten financial institutions across Asia and Middle East & Africa regions:
- Standard Chartered Bank (Singapore)
- DBS Bank (GIFT City)
- Commercial Bank of Ceylon PLC (Sri Lanka)
- The Korea Development Bank (South Korea)
- Sampath Bank PLC (Sri Lanka)
- SBI (Mauritius) Ltd
- BCP Bank (Mauritius) Ltd.
- Al Masraf (UAE)
- The National Bank of Ras Al Khaimah (P.S.C.) (UAE)
- KEXIM Asia Ltd. (Hong Kong)
Transaction Context and Performance
The syndication received strong response despite global macroeconomic uncertainties and heightened competition in the ECB market from FCNR(B) deposits mobilisation. The transaction was completed at competitive loan pricing.
Historical Context
This marks the fifth ECB syndication transaction successfully completed by CreditAccess Grameen over the past five years, bringing the total mobilized amount to USD 640 million to date.
Liability Profile Impact
The company currently holds approximately 24% of its liability profile in foreign borrowings and has built a strong lender base across 15 countries.
Funding Strategy
Over the past decade, the company has worked towards diversification of its liability franchise beyond traditional bank borrowings, building presence in domestic debt capital market and expanding outreach in global loan market leveraging its strong ESG credentials.
Additional FY27 Fundraising
During FY27, the company has also mobilized INR 940 crore through multiple private placements of non-convertible debentures (NCDs), with pricing broadly in line with its average cost of borrowings.
Management Commentary
Mr. Nilesh Dalvi, Chief Financial Officer, stated: "The successful closure of the USD 175 million facility at competitive pricing, amidst global macroeconomic uncertainties and heightened competition from FCNR(B) deposits mobilisation, demonstrates the strength of CA Grameen franchise and the confidence we have earned from international lenders. The CA Grameen brand rests on a proven performance track record, strong corporate governance standards, deep customer relationships across India's hinterland and disciplined risk management. As we diversify our sources of funding, our focus remains on optimising funding costs, maintaining a robust asset-liability management (ALM) profile and strengthening balance sheet resilience to support sustainable growth and our long-term commitment to financial inclusion."
Company Background
CreditAccess Grameen Limited is India's leading rural focused inclusive financing platform headquartered in Bengaluru. The company provides lifecycle credit suite to low-middle income households including group loans, individual business loans, secured business loans, affordable housing loans, and two-wheeler financing. The company operates across 457 districts in 16 states and one union territory (Puducherry) through 2,276 branches.