+
DEG And Citigroup Cofinance $76 Mn For Shriram Finance
ECONOMY & POLICY

DEG And Citigroup Cofinance $76 Mn For Shriram Finance

DEG, the German development finance institution, and Citigroup Inc. have cofinanced US$76 mn to Shriram Finance Limited to expand lending to micro, small and medium enterprises and to support electric vehicle financing. The funding is intended to bolster working capital and fleet lending across India while enabling Shriram Finance to scale products targeted at smaller enterprises. The transaction represents a collaboration between a development financier and a global bank to channel private capital into priority sectors.

DEG and Citi characterised the financing as aimed at broadening access to affordable credit for underserved businesses and at accelerating the adoption of electric mobility within the commercial and last mile segments. Shriram Finance, a non-bank financial company, will allocate proceeds to MSME clients and to commercial vehicle customers seeking to transition to electric vehicles. The arrangement is expected to complement existing lending while aligning with climate and financial inclusion objectives.

Industry observers noted that such structured financing can reduce financing costs for small operators and can facilitate longer tenors and tailored repayment schedules suited to cashflow patterns in the sector. By enabling fleet owners to invest in electric vehicles, the facility may contribute to lower operating costs and to reduced emissions over time. Stakeholders emphasised the role of blended finance in de-risking private investment in nascent segments.

The partnership underscores the growing role of multilateral and international banks in supporting India’s MSME ecosystem and transition to cleaner transport. Shriram Finance will integrate the capital into its lending operations and monitor outcomes related to credit reach and loan performance. The participants indicated that the deal reflects continued investor interest in resilient, impact?oriented lending opportunities.

DEG, the German development finance institution, and Citigroup Inc. have cofinanced US$76 mn to Shriram Finance Limited to expand lending to micro, small and medium enterprises and to support electric vehicle financing. The funding is intended to bolster working capital and fleet lending across India while enabling Shriram Finance to scale products targeted at smaller enterprises. The transaction represents a collaboration between a development financier and a global bank to channel private capital into priority sectors. DEG and Citi characterised the financing as aimed at broadening access to affordable credit for underserved businesses and at accelerating the adoption of electric mobility within the commercial and last mile segments. Shriram Finance, a non-bank financial company, will allocate proceeds to MSME clients and to commercial vehicle customers seeking to transition to electric vehicles. The arrangement is expected to complement existing lending while aligning with climate and financial inclusion objectives. Industry observers noted that such structured financing can reduce financing costs for small operators and can facilitate longer tenors and tailored repayment schedules suited to cashflow patterns in the sector. By enabling fleet owners to invest in electric vehicles, the facility may contribute to lower operating costs and to reduced emissions over time. Stakeholders emphasised the role of blended finance in de-risking private investment in nascent segments. The partnership underscores the growing role of multilateral and international banks in supporting India’s MSME ecosystem and transition to cleaner transport. Shriram Finance will integrate the capital into its lending operations and monitor outcomes related to credit reach and loan performance. The participants indicated that the deal reflects continued investor interest in resilient, impact?oriented lending opportunities.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code