Shriram Transport Finance Company (STFC) on Thursday said it has secured long-term funding of USD 250 million from the US International Development Finance Corporation (DFC).
The external commercial borrowing (ECB) is a fixed-rate 10-year loan under STFC’s social finance framework, as per a release. The funds raised from DFC, the development finance institution of the US government, will enable STFC to provide credit for the purchase of new and used vehicles throughout India. STFC’s Vice Chairman and Managing Director Umesh Revankar said the company will help fund more individual operators to buy vehicles, provide funding towards employment generation in rural areas, and empower more communities to optimise their income.
The company said the proceeds can be used for financing of vehicles for commercial purposes, alternate fuel financing through CNG, LPG and electric vehicles and employment generation through MSME loans, specifically for women entrepreneurs, among others. Besides the DFC loan, STFC has also successfully raised USD 475 million through a 144A Bond from the international market during the start of 2022, thereby continuing to diversify its funding profile, it added.
