HDFC Credila raises $100 million through the ECB to diversify funding sources
Non-banking financial company (NBFC) HDFC Credila has raised $100 million through external commercial borrowing (ECB), which will be used to diversify its funding resources and strengthen its position in the education finance sector.
DBS Bank was the lead arranger and bookrunner for the loan. It acted as the exclusive structurer and arranger of the transaction and led the end-to-end market exploration, credit analysis, due diligence, transaction structuring and execution as part of the deal process.
“DBS Bank has led a syndicated external commercial loan for HDFC Credila Financial Services Limited through its banking unit DBS IFSC in Gujarat International Finance Tec-City (GIFT City). As the sole mandated lead arranger and bookrunner, DBS Bank has completed a $100 million transaction that will support the growing HDFC Credila retail education loan franchise,” a DBS press release said.
HDFC Credila, a former subsidiary of HDFC Limited (now HDFC Bank), focuses on the education loan sector. Last month, HDFC Bank completed the sale of 90 percent stake in HDFC Credila to private equity firms BPEA EQT and Chrys Capital for Rs 9,553 crore.
Arijit Sanyal, Managing Director and Chief Executive Officer of HDFC Credila, said, “HDFC Credila aims to lend money from diversified sources at competitive rates, which in turn enables us to offer competitive education financing products to aspiring students. We are pleased” having closed a $100 million ECB transaction with DBS Bank as lead arranger and appreciating the strong support from DBS. As market leaders in education finance, these funds will help us support growth and therefore strengthen our position.”
HDFC Bank sold its stake in education finance company NBFC to meet regulatory requirements imposed before its merger with Housing Development Finance Corporation (HDFC).
Rajat Verma, Managing Director and Head of Institutional Banking Group at DBS Bank India, said: “As demand for education loans continues to increase at an accelerated pace, HDFC Credila is poised to play a key role in nurturing the country’s talent by enabling access to education for Indian students. In line with our focus on responsible banking, DBS is proud to support HDFC Credila, the country’s largest education loan company, as they empower youth to be future-ready.”
First print: April 9, 2024 | 8:05 PM IST