Credit Access Grameen - Unlocking cheaper loans via the ECB Route

CreditAccess Grameen Limited

recently raised $100 million through a first-of-its-kind multi-currency social loan in Japanese yen and US dollars , under the External Commercial Borrowing (ECB) route approved by the Reserve Bank of India (RBI). This syndicated loan, led by Standard Chartered Bank , involved multiple lenders from South Asia and the Far East . Initially aiming to raise $70 million, the loan was oversubscribed, prompting an increase in the amount. The transaction is notable for its competitive borrowing cost , lower than the company’s average, and aligns with the Social Loan Principles 2023 , ensuring funds are used for social development goals. This move supports CreditAccess Grameen’s strategy to achieve 25–30% foreign borrowings by FY28 , enhancing its geographic diversification and liability profile while strengthening its asset-liability management (ALM) position. This will also reduce the cost of borrowing thereby improving NIMs in near term.