Credit Saison's India Subsidiary Begins Raising Funds Through ECB Loans
Credit Saison's Indian subsidiary has begun raising funds through External Commercial Borrowing (ECB) loans. The subsidiary has signed a contract to execute a 150 million US dollar ECB loan from Mizuho Bank, which is a capital participant in Credit Saison India.
Credit Saison India has previously promoted diversification of its funding sources based on its CARE and CRISIL's long-term AAA ratings, through borrowings from over 35 local financial institutions, as well as by issuing corporate bonds and commercial paper. The ECB loan newly implemented as a funding method involves borrowing from banks and companies outside of India. Compared to domestic funding in India, ECB loans offer potential benefits such as lower interest rates and the possibility of long-term funding. Although regulations by the Reserve Bank of India need to be considered, this method is advantageous for Credit Saison India, which is establishing deep local roots and providing services tailored to local needs.
To date, the company has raised 200 million US dollars through an ECB syndicated loan with participation Indian commercial banks such as AxisBank, as well as DBS Singapore, and CTBC Taiwan. Additionally, it has raised approximately 100 million US dollars in ECB loans from local Indian banks. Now, with Mizuho Bank, the company is advancing diversification of borrowing methods in addition to their capital partnership, strengthening Credit Saison India's stable and long-term financial strategy.
Going forward, the Company will continue to strengthen its financial foundation to withstand interest rate fluctuations and changes in economic conditions, and will expand its business to provide services to more individuals and micro, small and medium enterprises who need funding. Furthermore, by leveraging the knowledge gained through its business in India and expanding it to other countries such as Brazil and Mexico, the Group will contribute to promoting financial inclusion globally.
