New Delhi: Shriram Transport Finance Company Limited (STFC), a commercial vehicle financier and a part of Shriram Group, has raised $250 million in long-term funding from US International Development Finance Corporation (DFC). $250 million in external commercial borrowing is a fixed rate, 10-year loan under STFC’s social finance framework.
The funds raised from DFC will enable STFC to provide financing for purchase of new and used vehicles. The proceeds from DFC can be used for: vehicle finance for commercial purposes; through alternative fuel financing ie CNG, LPG and electric vehicles; employment generation through MSME loans, in particular, finance to women entrepreneurs; To cater to the backward states of the country; and to empower and promote the social and economic status of the underprivileged communities in India.
Umesh Revankar, VC and MD, Umesh Revankar, said, “…we will help fund more individual operators to buy vehicles in new markets, provide funding for job creation in rural areas, and enable more communities to access their vehicles. Will empower you to optimize income and have a better quality of life.” Shriram Transport Finance
“DFC’s investment in Shriram Transport Finance Company is helping to promote economic growth, development and financial inclusion across India … With DFC’s loan, STFC India’s commercial transport sector by financing alternative fuels, which That is a notoriously difficult area to de-carbonize, will help lead to green and low-emission vehicles,” said Andrew Herskowitz, Chief Development Officer, DFC.
In addition to the DFC loan, STFC successfully raised $475 million through 144A bonds from the international market in early 2022.