Satin Creditcare Network secures $100 million in syndicated social loan from Standard Chartered and Sri Lankan lenders

Kolkata: Microfinance company Satin Creditcare Network has raised $100 million in external commercial borrowing from Standard Chartered Bank and six Sri Lankan lenders.

This is Satin's maiden syndicated social term loan raised from overseas lenders under the Reserve Bank of India’s automatic route.

"Securing $100 million from new lenders, notably prominent Sri Lankan banks, amid a challenging environment," chairperson HP Singh said.


“This social loan marks a significant landmark as Satin Creditcare’s first syndicated transaction, reflecting the trust and confidence that global financial institutions have placed in us. It highlights our strong governance, sustainable growth and financial resilience.”

Satin Creditcare said the funds will help expand access to financial services, promote economic participation and drive development in India's underbanked regions. It will also enhance the company's asset and liability management position while reducing its cost of funds, it said.

The facility was arranged solely by Standard Chartered Bank, which also participated in funding from SCB Gift City branch.

Other banks which participated in the loan syndication are Sri Lanka's Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon and DFCC Bank.

The first tranche of the loan was disbursed on March 12, according to Satin.

The loan is for three years and three months and benchmarked to a three-month term SOFR (secured overnight financing rate).

Standard Chartered Bank acted as the social loan coordinator for the transaction, helping Satin put in place a social financing framework, which carries a second party opinion from Moody’s Ratings.