March 31, 2025:Truhome Finance Limited (Formerly Shriram Housing Finance), one of India’s fastest-growing affordable housing finance companies with an AUM of over Rs.17,000crore, has successfully raised its maiden syndicated External Commercial Borrowing (ECB) of USD 100 million (approx. Rs.870 crore). The company has secured this funding through a social loan facility from DBS Bank and Sumitomo Mitsui Banking Corporation (SMBC) as Mandate Lead Arranger and Bookrunner (MLAB) and joint social loan coordinators in this syndication.
The ECB facility carries a coupon of SOFR + 160 basis points, one of the most competitive rates achieved by any Affordable Housing Finance Company CAHFC) in India.
Structured as a social loan, this facility underscores Truhome’s commitment to financial inclusion and sustainable housing finance. The fund will be utilized to expand Truhome’s lending portfolio, specifically catering to semi-urban and affordable housing segments, ensuring that underserved borrowers have access to homeownership opportunities. This landmark transaction not only reinforces Truhome’s strong credit profile as well as prudent risk management practices but also sets a new benchmark for global funding in the domestic affordable housing finance sector.
Ravi Subramanian, MD & CEO, Truhome Finance Ltd., said: “This ECB facility is a testament to Truhome’s leadership in the affordable housing finance segment and the trust that marquee global investors have in our business model. Being the first in our segment to achieve this milestone reaffirms our commitment to providing affordable home loans to underserved communities and strengthening financial inclusion in India.”
GS Agarwal, CFO, Truhome Finance Ltd., added: “Diversifying our liability mix through a syndicated social loan at highly competitive rates strengthens our financial position and allows us to scale profitably. This transaction paves the way for future collaborations with domestic as well as global financial institutions, enabling us to drive sustainable growth and bring down overall borrowing costs significantly.”
With this landmark social loan facility, Truhome Finance continues to lead the affordable housing finance sector, driving innovation in capital markets while furthering its mission to make homeownership affordable and accessible to all.