Piramal Finance Expands Sustainable Finance Initiatives
2 mins read

Piramal Finance Expands Sustainable Finance Initiatives

Piramal Capital & Housing Finance Ltd (hereinafter referred to as Piramal Finance), a leading diversified financial services company and a wholly owned subsidiary of Piramal Enterprises Limited (PEL), has signed its first ever USD Syndicated Social Loan of USD 100 million, in line with the ECB RBI guidelines. The proceeds will be used to fund and support impactful social projects that drive meaningful change in communities. The loan has a maturity of three years and is benchmarked against the three-month SOFR (Secured Overnight Financing Rate).

Standard Chartered Bank is the peer-to-peer lending coordinator for this transaction and the sole lead arranger, guarantor and bookrunner.

The financing is a secured term loan that will be used to provide loans for affordable housing, SME loans, priority sector loans, microfinance loans and other eligible products in line with the Sustainable Finance Framework.

The social lending will align with Piramal Enterprises’ Sustainable Finance Framework, which aligns with the Social Lending Principles 2023. According to the Loan Market Association, these principles outline the use of proceeds, Sustainable Development Goals and governance. S&P Global Ratings has provided a second-party review of the Framework, finding it credible and influential.

Mr. Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We are pleased to partner with Standard Chartered Bank on this social loan which reinforces 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 objective of Doing Well and Doing Good. This loan will significantly contribute to our efforts in supporting affordable housing and SMEs, driving inclusive growth and economic development across the country.”

Ms. Ankur Khurana, Co-Head, Client Coverage, India & South Asia, Standard Chartered Bank, added, “This is our first social lending for Piramal Group’s NBFC business and we look forward to partnering with them on their sustainable journey. Sustainable finance is a strategic priority at Standard Chartered Bank and we are committed to helping our clients transition towards net zero emissions and accelerate the bank’s journey towards building a green economy. In India, Standard Chartered Bank has led the issuance of over USD 20 billion of bonds across green, social and sustainability themes over the last five years.”

Piramal Finance is a leading NBFC-HFC in the affordable lending space in India, offering a wide range of retail products tailored to the needs of Bharat and supporting underserved communities. It has a network of 490 branches across 26 states, catering to over 6,000 pin codes across metros and Tier 1-3 cities. The company plans to expand by 50-100 branches by fiscal 2025.