Piramal Finance raised $265 Mn via External Commercial borrowing

Piramal Finance Ltd has raised $265 million (approximately ₹2,300 crores) through an External Commercial Borrowing (ECB) facility, the company announced on Thursday. The transaction includes a green-shoe option that could potentially increase the amount to $300 million.

The three-year facility attracted participation from four major international banks: First Abu Dhabi Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and HSBC. The company has fully hedged the borrowing to protect against currency and interest rate fluctuations.

This latest funding brings Piramal Finance’s total international borrowing to $815 million for fiscal year 2025. According to the company, the landed cost of funds is more competitive than domestic borrowing rates available in India.

Managing Director Jairam Sridharan said the funds will support expansion of lending operations, particularly targeting affordable housing and financial inclusion initiatives in Tier-2 and 3 cities. The company aims to source 10-12 per cent of its borrowings from international markets over the next 2-3 years.

Formerly known as Piramal Capital & Housing Finance Ltd, Piramal Finance is a wholly-owned subsidiary of Piramal Enterprises Ltd and provides diversified financial services across India.

The shares of Piramal Enterprises Ltd closed at ₹1,008, up by ₹1.95 or 0.19 per cent, on the NSE today.

Published on April 3, 2025