Fullerton India raises Rs 2,795 cr via ECB

Fullerton India Credit Company Ltd. (Fullerton India), announced today that it has successfully raised Rs 2,795 crore ($350 mn), through external commercial borrowing (ECB). The company said that it has raised the loan at a margin of 122 basis point over the SOFR (Secured Overnight Financing Rate) for a tenor of 5 years from Sumitomo Mitsui Banking Corporation (SMBC) Singapore.

The non-banking firm mentioned that the past year has been transformative for the company as it became a consolidated subsidiary of Japan’s Sumitomo Mitsui Financial Group (SMFG), with SMFG acquiring 74.9 per cent stake from Fullerton Financial Holdings (FFH).

Shantanu Mitra, MD and CEO, Fullerton India, said, “Our FY22 performance echoes our deep commitment to innovate and serve each one of our customers with unique loan offerings, so they can fulfil their financing needs. This funding is fully hedged for foreign currency risks, and it is almost equivalent to the domestic cost of borrowing. The current ECB raised will enable us to diversify our funding base and tap offshore markets to fund future growth plans of the company.”

Nobuyuki Kawabata, Senior Managing Executive Officer, Sumitomo Mitsui Financial Group and Chairman of Fullerton India, said, “This transaction reinforces our commitment towards Fullerton India. We believe this lending will play an important role to promote inclusive growth in line with our long-term strategy for India. SMFG is committed to supporting the growth plan of Fullerton India by leveraging its global relationship and providing funding support.”

Sumitomo Mitsui Financial Group (SMFG)

SMFG holds a 74.9 per cent stake in Fullerton India Credit Company Limited and has a heritage exceeding 400 years in Japan. SMFG is listed on the Tokyo and New York (through ADR) Stock Exchanges and has a market capitalization of approximately $41.5 billion (as of August 31, 2022).

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