Credila , an education loan provider, is making significant moves in the financial market, seeking to raise up to $600 million through external commercial borrowing from foreign lenders. This development comes on the heels of the company filing draft IPO papers to raise ₹5,000 crore.

Foreign Loan Details

Credila is in discussions with several prominent foreign lenders, including:

• DBS
• MUFG
• Sumitomo Mitsui Banking Corp

The proposed US dollar loan is being marketed at competitive rates:

• Spreads of 135-150 basis points over SOFR (Secured Overnight Financing Rate)
• Expected interest rate of 5.5-6%

Expanding Financial Relationships

Credila has been actively broadening its lending relationships:

• Increased from 19 lenders two years ago to 29 currently
• Offshore borrowings now represent 18.4% of total debt, up from zero two years prior

Recent Ownership Changes

HDFC Bank has sold its stake in Credila to:

• EQT's Kopvoorn BV
• ChrysCapital entities

As of March, Kopvoorn holds a significant 63.96% stake in the company.

Financial Performance

Credila has shown substantial growth in its borrowings:

This increase in borrowings and slight rise in the cost of debt reflect the company's expanding operations and the changing interest rate environment.

The education loan provider's move to raise funds through external commercial borrowing, coupled with its recent IPO filing, signals a strategic push for growth and diversification of its funding sources. As Credila continues to expand its lending relationships and explore international funding options, it positions itself for potential expansion in the competitive education finance sector.

M&M Financial Services (Mahindra Finance) has announced a strategic partnership with ICICI Lombard General Insurance to distribute motor insurance products, aiming to enhance financial inclusion and protection for customers across India.

Key Highlights of the Partnership

• Mahindra Finance, a leading non-banking finance company, will leverage its extensive rural and semi-urban network to distribute ICICI Lombard's motor insurance products.
• The collaboration combines Mahindra Finance's reach of over 11 million customers through 1,352 offices across 516,000 villages and 8,000 towns with ICICI Lombard's expertise in motor insurance.
• ICICI Lombard, a prominent private general insurer, brings its portfolio of motor insurance solutions to the partnership, having issued over 37.6 million policies with a Gross Written Premium of ₹282.58 billion.

Expanding Financial Inclusion

Raul Rebello, Managing Director & CEO of Mahindra Finance, emphasized the company's commitment to delivering accessible financial solutions: "By combining ICICI Lombard's insurance expertise with Mahindra Finance's extensive reach, we aim to strengthen financial security and resilience for millions of customers across the country."

Customer-Centric Approach

Sanjeev Mantri, Managing Director & CEO of ICICI Lombard, highlighted the customer-focused strategy behind the partnership: "Our multi-product, multi-channel strategy is a reflection of our belief that insurance must be built around the customers - accessible, relevant, and integrated into their everyday financial journey."

Technological Integration

The partnership is set to leverage ICICI Lombard's tech-driven approach, which includes:

• Cloud migration of core systems
• AI-powered insurance solutions
• The IL TakeCare app, featuring innovative tools like Face Scan technology

Impact on Rural and Semi-Urban Markets

This collaboration is expected to significantly impact rural and semi-urban areas by:

1. Providing tailored insurance solutions to previously underserved markets
2. Integrating protection seamlessly into customers' broader financial journeys
3. Enhancing financial resilience in emerging India

Looking Ahead

As both companies bring their strengths to the table - Mahindra Finance's community presence and ICICI Lombard's customer-centric, tech-driven approach - the partnership aims to expand insurance penetration, enhance customer experience, and build financial resilience across India.

This strategic alliance represents a significant step towards empowering customers with financial security and reaffirms both companies' commitment to being trusted financial solutions partners for emerging India.