Shriram Transport Finance Company (STFC), one of many largest business car financers, and a part of the Shriram Group, secured a long-term funding of $250 million from the US International Development Finance Corporation (DFC) of the US. The $250- million exterior business borrowing (ECB) is a fixed-rate 10-year mortgage beneath STFC’s social finance framework. The funding will allow STFC to additional its monetary inclusion mission.
The funds raised from DFC will allow STFC to offer credit score for the acquisition of recent and used autos all through India. The proceeds from DFC can be utilized for car finance for business functions, alternate fuel-financing particularly via CNG, LPG and electrical autos and employment era via MSME loans, particularly, finance girls entrepreneurs. It may also be used for catering to laggard states of the nation and empower and promote the social and financial standing of the underserved communities in India, mentioned STFC.
Besides the DFC mortgage, STFC has additionally raised $475 million via a 144A bond from the worldwide market throughout the begin of 2022, thereby persevering with to diversify its funding profile. The fundraising is amid the merger strategy of Shriram Capital (SCL) and Shriram City Union Finance (SCUF) with STFC as part of restructuring in Shriram Group.
Umesh Revankar, VC & MD, STFC, mentioned, “STFC’s success in securing international funding from one of the world’s leading providers of development finance is a testament to our strength and stability, as well as an endorsement of our mission to further financial inclusion. We will help fund more individual operators to buy vehicles into new markets, provide funding towards employment generation in rural areas, and empower more communities to optimise their income and have a better quality of life.”
STFC is a frontrunner within the organised financing of pre-owned vans with a strategic presence in 5-10-year-old truck-lending. The firm has belongings on stability sheet of Rs 1.27 trillion (March 2022) and has a pan-India presence with a community of 1,854 branches, and employs 25,456 staff together with 19,475 enterprise groups. The firm has constructed a robust buyer base of round 2.11 million clients.
Andrew Herscowitz, chief improvement officer of DFC, mentioned, “DFC’s investment in STFC is for helping boost economic growth, development, and financial inclusion across India. DFC’s financing helps increase access to finance for owner-operators and other small businesses to purchase commercial vehicles—including business owners from rural and underserved communities. With DFC’s loan, STFC will also help to Green India’s commercial transport sector, a notoriously difficult sector to decarbonise, by financing alternative fuel and lower-emissions vehicles.”
Source: www.financialexpress.com”