Piramal Finance raises over Rs 2,300 crore via ECB route

Mumbai: Non-bank lender Piramal Finance raised more than ₹2,300 crore ($265 million) through an external commercial borrowing (ECB) facility. The loan was led by Standard Chartered Bank, The Hongkong and Shanghai Banking Corporation (HSBC), Sumitomo Mitsui Banking Corporation, and First Abu Dhabi Bank. The floating-rate loan is priced just under 9%, around 15-20 bps lower than the prevailing domestic market rate.

"The facility has a 3-year tenor and is fully hedged to mitigate forex and interest rate risks," said a banker. "Landed cost of funds is more competitive compared to domestic borrowing rates, making it an attractive financing option for Piramal Finance." Loan has a greenshoe option, allowing it to be upsized to $300 million.

In FY25, Piramal Finance marked its first foray into the international debt market, raising $815 million to support its growth plans. These funds will be primarily allocated to expanding the company's lending portfolio, with a strategic emphasis on affordable housing and financial inclusion in tier-2 and tier-3 markets.