UGRO Capital will focus on reducing its cost of borrowing in FY27 after its borrowing costs were reported as higher than peers by one point two five per cent, the managing director said. The non-bank lender has been described as having grown its assets under management (AUM) from 30,000 mn in 2020 to nearly 150,000 mn in 2025, and the sharp expansion has necessitated higher liability mobilisation that has pushed up borrowing costs. The focus on lowering borrowing costs has been framed as necessary to serve end customers effectively. With the AUM base now large and growth expected to moderate, UGRO anticipates that demand for liabilities will reduce, providing flexibility to negotiate better rates. The firm intends to retain a broadly unchanged liability mix with about 40 per cent sourced from banks, around 20 per cent from global development financial institutions and the balance from capital markets, while prioritising repricing and improved terms. Improved credit ratings and a more stable balance sheet are expected to support efforts to narrow the one to one point two five per cent gap with rivals, although the pace will depend on market conditions. The managing director ruled out any equity capital raise over the next three years and stated that the company is adequately capitalised. On the debt side liquidity was described as fairly strong and supported by relationships with banks, global DFIs and capital market investors. The acquisition of Profectus Capital last year has been credited with strengthening UGRO's secured asset base and improving operational efficiency. The deal is reported to have added around 30,000 mn of secured assets to the balance sheet. Cost synergies have been highlighted, with approximately 1,200 mn of cost savings already realised and total realignment benefits of about 2,200 mn expected to enhance cash profitability significantly in FY27. Management indicated that these savings and the strengthened asset base will underpin efforts to reduce borrowing costs and support customer servicing.