July 11, 2024: Piramal Capital & Housing Finance Ltd (herein referred to as Piramal Finance), a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), has signed its maiden USD syndicated Social Loan of $100 million, under the ECB guidelines of the RBI. The proceeds will be dedicated to funding and supporting impactful social projects, driving meaningful change in communities. The loan has a maturity of three years and is benchmarked to a three-month SOFR (secured overnight financing rate).
Standard Chartered Bank is the Social Loan Coordinator for this transaction and the sole mandated Lead Arranger, Underwriter and Bookrunner.
The financing is a secured term loan that will be used for lending in affordable housing, MSME business loans, priority sector loans, microfinance loans, and other eligible products in accordance with the Sustainable Finance framework.
The social loan will adhere to Piramal Enterprises’ Sustainable Finance Framework, which aligns with the Social Loan Principles 2023. According to the Loan Market Association, these principles stipulate the use of proceeds, Sustainable Development Goals, and governance. S&P Global Ratings has provided a second-party opinion on the Framework, considering it credible and impactful.
Mr. Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We are happy to partner with Standard Chartered Bank on this social loan, which strengthens our commitment to sustainable finance and our dedication to supporting underserved communities. This is a key milestone as it enables Piramal Finance to diversify its liquidity sources while achieving the Group’s purpose of Doing Well and Doing Good. This loan will significantly contribute to our efforts to support affordable housing and MSMEs, driving inclusive growth and economic development across the country.”
Ms. Ankur Khurana, Client Coverage Co-Head India & South Asia, Standard Chartered Bank, added, “This is our first Social Loan for Piramal Group’s NBFC business and we look forward to being a partner in their sustainable journey. Sustainable financing is one of the strategic priorities at Standard Chartered Bank and we are committed to help our clients transition to net zero and accelerate the Bank’s journey towards building a green economy. In India, Standard Chartered Bank has led bond issuances of over USD 20 billion across green, social, and sustainability-linked themes in the last five years.”
