STFC is a US government development finance company. Receives 250 250 million in long-term funding from International Development Finance Corporation (DFC)
Funds will enable STFC to enhance its financial inclusion drive
Mumbai: Shriram Transport Finance Company Limited (STFC), India’s largest commercial vehicle financier and part of the Shriram Group, has been acquired by the US government. Received a long-term secured fund of 250 250 million from the International Development Finance Corporation (DFC). The 250 250 million External Commercial Borrowing (ECB) is a 10-year loan with a fixed rate of 10 years under STFC’s social finance structure.
Funding from DFC, a US government development finance agency, will enable SDFC to provide financing for new and used vehicles across India. DFC funds can be used for:
To lend vehicles with alternative fuels through commercial, CNG, LPG and electric vehicles for commercial purposes, to create employment through MSME loans, especially to lend to women entrepreneurs, to increase leverage in the backward states of the country and in India.
In addition to DFC loans, STFC has successfully secured 47 475 million in funds from the international market through 144A bonds since the beginning of 2022, thus maintaining the diversification of its fund profile.
About raising this fund, Mr. Umesh Rewankar, VC and MD, Shriram Transport Finance Company, said,
We will fund more and more individual operators to purchase vehicles in new markets, create jobs in rural areas as well as enable more and more communities to increase their income and improve their quality of life. ”
Commenting on the funding, DFC Chief Development Officer Andrew Herskovitz said, “DFC’s investment in Shriram Transport Finance Company has helped accelerate economic growth, development and financial inclusion across India.
DFC lending will help honorarium operators and other small businesses increase access to credit for the purchase of commercial vehicles – involving business owners from rural and disadvantaged communities. Along with the DFC loan, STFC will also help make India’s commercial transport sector more environmentally friendly in the difficult area of reducing carbon emissions by providing alternative fuels and financing for low-emission vehicles. ”