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CreditAccess Grameen Signs $175M Syndicated Social Loan Led by Standard Chartered and DBS Bank; 5-Year Offshore Raises Hit $640M

India’s largest non-banking financial company–microfinance institution (NBFC-MFI), CreditAccess Grameen Limited, has signed an agreement to mobilise $175 million (~₹1,458 crore) through a syndicated social loan facility from a consortium of 10 international lenders.

FINSAMUDRA DESK · 13 Oct 2026, 9:46 am IST · 2 MIN

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Structured as an External Commercial Borrowing (ECB) under the automatic route of the Reserve Bank of India (RBI), the transaction was led by Standard Chartered Bank and DBS Bank as Joint Mandated Lead Arrangers and Bookrunners (JMLABs).

Pricing Mechanics and the 10-Bank Global Syndicate

The $175 million facility carries an average tenure of 3.25 years at a pre-hedging coupon of 6.00%, pegged at 215 basis points (bps) over the Secured Overnight Financing Rate (SOFR), which currently stands at 3.85%, plus applicable currency hedging costs.

Beyond anchor commitments from Standard Chartered Bank and DBS Bank, the syndicate drew participation from eight additional overseas financial institutions across Asia, the Middle East, and Africa:

  • East Asia: The Korea Development Bank (South Korea) and KEXIM Asia Ltd (Hong Kong)
  • Middle East (UAE): Al Masraf and The National Bank of Ras Al Khaimah (P.S.C.) [RAKBANK]
  • South Asia (Sri Lanka): Commercial Bank of Ceylon PLC and Sampath Bank PLC
  • Africa (Mauritius): SBI (Mauritius) Ltd and BCP Bank (Mauritius) Ltd

Liability Diversification and ALM Strengthening

  1. Contained Hedging Impact: "While the current hedging costs have temporarily risen, the overall impact on our cost of borrowings is limited since this funding constitutes only 7% of our total borrowings," Dalvi stated.
  2. Annual ECB Mandate & ALM Edge: "We aim to raise 15–20% of our annual borrowing requirements through ECBs every year. Hence, this is a continual exercise required to diversify our liability profile. Since ECBs come with a longer tenure, it also helps us in strengthening our ALM (asset liability management) profile," he added.
  3. $640 Million Five-Year Track Record: The transaction marks CreditAccess Grameen’s fifth offshore syndication in the past five years, taking its cumulative overseas debt mobilisation to $640 million and elevating foreign currency borrowings to approximately 24% of its total liability profile.

Sources


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