Piramal Capitaland Housing Finance raises rs 835 crore through social loan

Piramal Capital & Housing Finance raised its maiden dollar syndicated social loan of $100 million (?835 crore). The entire loan is pre-funded by Standard Chartered Bank and the foreign lender is expected to syndicate the loan in the next few months. The loan has a three-year maturity, and it is benchmarked to the three-month secured overnight financing rate (SOFR) plus 200 basis points. The prevailing SOFR is 5.3%. "Through this loan, we are trying to tap the overseas market and since a large part of our financing gels well with the social theme, this loan is the first of many to come," a Standard Chartered Bank official said on condition of anonymity. "All highly-rated NBFCs have to start looking at some amount of financing from the international markets and this route is expected to pick up pace. In fact, there is a lot of global investor appetite for ESG space." Standard Chartered Bank is the social loan coordinator for this transaction and the sole mandated lead arranger, underwriter and book-runner. Social loans are used to fund projects that have a social cause, like a welfare project, affordable homes or environmentally sustainable projects among others. Last month, Shriram Finance raised more than $450 million through a Last month, Shriram Finance raised more than $450 million through a syndicated term loan. Mortgage loans, comprising home and small business loans, account for 68% of the overall retail AUM Such loans grew at a robust 38% in FY24. The lender expects 15% AUM growth in FY25 to around ?80,000 crore. 
 

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