Shriram Transport Finance pays 250 million dollars via the ECB
Shriram Transport Finance Company Limited (STFC) said it secured $250 million in long-term funding from the US International Development Finance Corporation (DFC).
The $250 million External Business Loan (ECB) is a 10-year fixed rate loan under STFC’s social finance, according to the statement from the non-bank finance company. STFC did not disclose the interest rate at which the funds were raised.
Funds raised from DFC can be used to finance vehicles for commercial use; financing of alternative fuel vehicles (CNG, LPG and electric); job creation through loans to MSMEs, in particular financing women entrepreneurs; meet the needs of the country’s lagging states and empower and promote the social and economic status of underserved communities in India, the company said.
Umesh Revankar, VC & MD, STFC, said: “We will help fund more individual operators to purchase vehicles in new markets, provide funds for job creation in rural areas and give more communities the means to optimize their income and have a better quality of life. .”
Andrew Herscowitz, DFC’s Director of Development, noted that DFC’s funding will help increase access to financing for owner-operators and other small businesses to purchase commercial vehicles, including owners of businesses in rural and underserved communities.
“With DFC’s loan, STFC will help green India’s commercial transport sector, the hardest sector to decarbonize, by financing alternative fuels and low-emission vehicles,” Herscowitz said.
By early 2022, STFC had raised $475 million via a 144A bond in the international market, continuing to diversify its funding profile.
June 10, 2022