Non-banking finance company (NBFC) Fullerton India Credit Company Ltd. sad it had raised ₹2,795 crore ($350 million), through the external commercial borrowing (ECB) route.
The company had raised the loan at a margin of 122 basis points over the SOFR (Secured Overnight Financing Rate) for a tenor of 5 years from Sumitomo Mitsui Banking Corporation (SMBC), Singapore via parent route.
“The long tenor of the facility benefits the overall Asset Liability Management of the company,” Fullerton said.
Last year, it became a consolidated subsidiary of Japan’s Sumitomo Mitsui Financial Group (SMFG), with the latter acquiring 74.9% stake from Fullerton Financial Holdings (FFH). SMFG will eventually acquire 100% stake.
Shantanu Mitra, MD and CEO, 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, the firm had raised funds from various institutions like Asian Development Bank (ADB), International Finance Corporation (IFC) and major banks in India, it said.