A domestic housing finance provider has raised its first $100 million (?835 crore) dollar-denominated syndicated social loan. The entire amount has been initially funded by a foreign bank, which plans to syndicate the loan over the coming months.

The loan carries a three-year maturity and is benchmarked to the three-month secured overnight financing rate (SOFR) plus 200 basis points, with the current SOFR at 5.3%.

According to an official involved in the transaction, the financing aligns well with the social-impact nature of the lender’s portfolio, making this the first of several planned fundraises through the overseas market. The official added that highly rated non-bank lenders in India are increasingly expected to explore international market funding, driven by strong global investor appetite for ESG-focused instruments.

The foreign bank involved in the transaction is acting as the social loan coordinator, as well as the sole arranger, underwriter, and book-runner.

Social loans are typically deployed toward socially beneficial initiatives such as welfare programs, affordable housing, or environmentally sustainable developments.

Recently, another major non-bank lender in India raised over $450 million through a syndicated term loan.

Mortgage-backed lending—comprising home loans and small business loans—currently forms 68% of the lender’s overall retail assets under management (AUM). These segments grew by 38% in FY24, and the lender expects its AUM to rise 15% in FY25 to approximately ?80,000 crore.

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