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CreditAccess Grameen signs USD 200 million deal

Jun 27, 2023

By: BlinkX Research Team

CreditAccess Grameen Limited has signed a historic syndicated social loan facility of up to USD 200 million, qualifying as ECB under the automatic route of the RBI. The Company has received USD 160 million in commitments to date, along with a green-shoe option to raise an additional USD 40 million, exercisable over 120 days from the date of signing of the facility agreement. 

The Company has currently drawn USD 100 million, and the remaining commitments shall be drawn over the coming months.

The social loan shall abide by CA Grameen’s Social Loan Framework which aligns with the Social Loan Principles 2023, stipulating the use of proceeds, social development goals and governance, according to the Loan Market Association.

Sustainalytics has provided a second-party opinion on CA Grameen’s Social Loan Framework, considering it credible and impactful.

Standard Chartered Bank is the Social Loan Coordinator for this transaction along with being the sole Mandated Lead Arranger and sole Bookrunner.

Standard Chartered Bank initially launched the transaction for USD 100 million, however, given the overwhelming response to this Indian Social Loan proposition, CA Grameen and Standard Chartered Bank decided to upsize the facility up to USD 200 million. The USD 160 million commitments have been received from 12 banks, including a contribution of 25% from Taiwanese Banks, 28% from Middle Eastern Banks along with the lead arranger, and the rest from foreign branches of Indian Banks.

Source: Media reports