CreditAccess Grameen Ltd, a microfinance institution focused on providing financial services to women in rural India, has secured a $175 million syndicated social loan facility through the external commercial borrowing (ECB) route under the Reserve Bank of India’s automatic route.
The transaction attracted 10 financial institutions from Asia, the Middle East and Africa, with the company securing competitive pricing despite global macroeconomic uncertainties and heightened competition in the ECB market from mobilisation of FCNR (B) deposits.
Ten financial institutions participate
Standard Chartered Bank (Singapore) and DBS Bank (GIFT City) were the anchor contributors to the facility.
Other participants included Commercial Bank of Ceylon, The Korea Development Bank, Sampath Bank, SBI (Mauritius), BCP Bank (Mauritius), Al Masraf, National Bank of Ras Al Khaimah and KEXIM Asia.
The company said the transaction reflected international lenders’ continued confidence in its business model and corporate governance standards.
ECB borrowings reach $640 million
This is CreditAccess Grameen’s fifth successful ECB syndication in five years, taking the cumulative funds mobilised through such transactions to $640 million.
Foreign borrowings currently account for about 24% of the company’s liability profile, supported by a lender base spanning 15 countries.
Funding sources broaden
Over the past decade, the company has diversified its funding sources beyond traditional bank borrowings by expanding its presence in the domestic debt capital market and international loan market, leveraging its environmental, social and governance (ESG) credentials.
During FY27, CreditAccess Grameen has also raised ₹940 crore through multiple private placements of non-convertible debentures, with pricing broadly in line with its average cost of borrowings.
Focus on funding costs and financial inclusion
“The successful closure of the $175 million facility at competitive pricing demonstrates the strength of the CA Grameen franchise and the confidence we have earned from international lenders.
As we diversify our sources of funding, our focus remains on optimising funding costs, maintaining a robust asset-liability management profile and strengthening balance sheet resilience to support sustainable growth and our long-term commitment to financial inclusion,” Nilesh Dalvi, Chief Financial Officer, CreditAccess Grameen, said.