Shriram Housing Finance, a part of the Shriram Group, has successfully raised $50 million in its inaugural external commercial borrowing (ECB) as part of its efforts to diversify its funding sources. The funds obtained through the ECB will be utilised for financing affordable housing projects.The mortgage lender secured the funding from Canara Bank's London branch at a rate of 200 basis points over the Secured Overnight Financing Rate (SOFR), according to a company official. The borrowing tenure is set for three years, and taking into account the one-year hedging cost, the total cost stands at approximately 8.4 per cent. This aligns with the company's average borrowing cost of 8.5 per cent.Ravi Subramanian, the managing director of Shriram Housing Finance, expressed the importance of having multiple fundraising channels available as the company grows. He stated, We will consider utilising this method of raising funds in the future as well. Although we haven't set any specific targets, we anticipate raising an additional $150 million this year. Subramanian further noted that global investors are eager to tap into the potential offered by the affordable housing finance sector in India.Having financed 136,000 housing units thus far, Shriram Housing Finance boasts a gross loan book of Rs 90 billion as of June. It is recognised as one of the fastest-growing entities in the affordable housing space, with its loan portfolio exhibiting a Compound Annual Growth Rate (CAGR) of 44 per cent over the past four years.The company is on track to achieve its target of reaching Rs 100 billion in Assets Under Management (AUM) by September and aims to expand it further to Rs 130 billion by the following March. The majority of its business originates from the western and southern states, with an average loan size of Rs 16.6 lakh.Shriram Housing Finance engages in additional fundraising activities, including borrowing from banks and the debt capital market, as well as obtaining refinancing from the National Housing Bank. Another avenue for raising funds is through securitisation by issuing pass-through certificates.To sustain its growth momentum, the company intends to raise approximately $100 million in equity by the end of the current fiscal year. The parent company, Shriram Finance, which holds an 85 per cent stake in the housing subsidiary, is considering options such as injecting capital, diluting 10-20 per cent of its ownership, or pursuing an initial public offering, as revealed by Shriram Finance Managing Director YS Chakravarti after the fourth-quarter quarterly earnings.