Microfinance lender CreditAccess Grameen on Monday said it had raised $175 million through a syndicated social loan facility, securing participation from 10 financial institutions across Asia, the Middle East and Africa, as it seeks to diversify funding sources and optimise borrowing costs.
The facility qualifies as external commercial borrowing (ECB) under the Reserve Bank of India’s automatic route, the company said in a stock exchange filing on Monday. Standard Chartered Bank and DBS Bank acted as the joint mandated lead arrangers and bookrunners.
The transaction comes amid global macroeconomic uncertainties and heightened competition in the external borrowing market from the mobilisation of foreign currency non-resident (FCNR-B) deposits, the company said.
The participating lenders include Standard Chartered Bank (Singapore), DBS Bank (GIFT City), Commercial Bank of Ceylon, The Korea Development Bank, Sampath Bank, SBI (Mauritius), BCP Bank (Mauritius), Al Masraf, The National Bank of Ras Al Khaimah and KEXIM Asia.
This is CreditAccess Grameen’s fifth ECB syndication in five years, taking the total funds mobilised through such transactions to $640 million. Foreign borrowings currently account for around 24 per cent of the lender’s liability profile, with its international lender base spanning 15 countries.
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The company has also raised Rs 940 crore through multiple private placements of non-convertible debentures (NCDs) during FY27, with pricing broadly in line with its average cost of borrowings.
“The successful closure of the USD 175 million facility at competitive pricing... demonstrates the strength of CA Grameen franchise and the confidence we have earned from international lenders,” said Nilesh Dalvi, chief financial officer, CreditAccess Grameen.
The lender said it would continue to focus on optimising funding costs, maintaining a robust asset-liability management profile and strengthening balance-sheet resilience.