Truhome Finance Ltd (formerly Shriram Housing Finance) has raised US $100 million (approximately ₹870 crore) via its maiden syndicated External Commercial Borrowing (ECB).
The ECB, which is structured as a social loan, facility carries a coupon of SOFR (Secured Overnight Financing Rate) + 160 basis points, per a statement issued by the affordable housing finance company.
The fund will be utilised to expand Truhome’s lending portfolio, specifically catering to semi-urban and affordable housing segments, ensuring that underserved borrowers have access to homeownership opportunities, it added.
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“The company has secured this funding through a social loan facility from DBS Bank and Sumitomo Mitsui Banking Corporation (SMBC) as Mandate Lead Arranger and Bookrunner (MLAB) and joint social loan coordinators in this syndication,’ the company, which has assets under management of over ₹17,000 crore, said.
Ravi Subramanian, MD & CEO, Truhome Finance, said, “Being the first in our segment to achieve this (ECB) milestone reaffirms our commitment to providing affordable home loans to underserved communities and strengthening financial inclusion in India.”
GS Agarwal, CFO, Truhome Finance, observed that diversifying the company’s liability mix through a syndicated social loan strengthens its financial position and allows it to scale profitably.
This transaction paves the way for future collaborations with domestic as well as global financial institutions, enabling the company to drive sustainable growth and bring down overall borrowing costs significantly, he added.
