Non-bank lender Fullerton India Credit Company Ltd. said it has raised ₹2,795 crore, or around $350 million, through external commercial borrowings (ECBs).
The company said it has raised the loan at a margin of 122 basis points (bps) over the Secured Overnight Financing Rate for a tenor of five years from Sumitomo Mitsui Banking Corp. (SMBC), Singapore, through the parent route. The long tenor of the facility benefits overall asset liability management of the company, it said in a statement.
The past year, it said, has been transformative as the company became a consolidated subsidiary of Japan’s Sumitomo Mitsui Financial Group (SMFG), with SMFG acquiring 74.9% stake from Fullerton Financial Holdings (FFH). SMFG will eventually acquire 100% stake.
Shantanu Mitra, managing director and chief executive, Fullerton India, said, “This funding is fully-hedged for foreign currency risks, and it is almost equivalent to the domestic cost of borrowing. The current ECB raised will enable us to diversify our funding base and tap offshore markets to fund future growth plans of the company.”
Over the last few years, Fullerton India has raised funds from various institutions like Asian Development Bank (ADB), International Finance Corporation (IFC) and major Banks in India.
Nobuyuki Kawabata, senior managing executive officer, Sumitomo Mitsui Financial Group, and chairman of Fullerton India, said, “This transaction reinforces our commitment towards Fullerton India. We believe this lending will play an important role to promote inclusive growth in line with our long-term strategy for India.”
