Wednesday, April 24, 2024
HomeFunding Muthoot Microfin Raises $75m through external Loan

[Funding Alert] Muthoot Microfin Raises $75m through external Loan

One of the top microfinance companies in India, Muthoot Microfin Limited, said on Thursday that it has obtained a $75 million term loan in the form of external commercial borrowings (ECBs).

The company released a statement stating that Standard Chartered Bank, Doha Bank, Union Bank of India (UK) Ltd., RakBank (National Bank of Ras Al Khaimah), and Canara Bank, GIFT City, were involved in the transaction. The transaction’s social loan coordinator and exclusive fund arranger was Standard Chartered Bank.

Read also – BEVM secures tens of million USD in seed and also its Series A Round Funding

There is a $25 million greenshoe option available for the $75 million social lending facility. According to the announcement, the money would be used to finance and on-lend qualifying social loans. Later on, a few additional banks are anticipated to participate via the greenshoe segment.

“The ECB will further our business objectives as we plan to utilise the fund towards facilitating microfinance loans across geographies.

This strategic move not only opens avenues for international partnerships but also introduces the MFI sector to diverse international banking entities across different geographies,” said Sadaf Sayeed, CEO of Muthoot Microfin Limited.

Read also – India-Based Grasim Industries Raises $150m in Funding

With a gross loan portfolio (GLP) of Rs 11,458 crore as of December 31, 2023, the organization served 3,27 million active clients through 1,424 branches located in 18 states and 346 districts.

About Muthoot Microfin

The Muthoot Pappachan Group (MPG) includes Muthoot Microfin. MPG is a prominent corporate group that operates across various industries. One of India’s top microfinance companies, Muthoot Microfin Limited, specializes in lending small amounts of money to women borrowers, mostly in rural areas.

- Advertisement -
RELATED ARTICLES
- Advertisment -

Most Popular