Piramal Finance Secures $350 Million Multilateral Funding from IFC and ADB
Piramal Finance Limited has secured $350 million in multilateral financing from IFC ($200 million) and ADB ($150 million), marking its first borrowing from development finance institutions. The five-year facilities will be drawn between January and March 2026 to support affordable housing finance, MSME credit, and lending in tier-2 and tier-3 cities. The company is pursuing an additional $150 million from other development finance institutions, potentially reaching $500 million in total multilateral funding by fiscal year-end.
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Piramal Finance Limited has achieved a significant milestone by securing $350 million in multilateral financing from two prominent development finance institutions. This marks the non-banking financial company's first borrowing from development finance institutions, representing a strategic diversification of its funding sources.
Funding Structure and Timeline
The multilateral financing package demonstrates strong institutional confidence in Piramal Finance's business model and growth prospects:
| Funding Source: | Amount | Tenor |
|---|---|---|
| International Finance Corporation (IFC): | $200 million | 5 years |
| Asian Development Bank (ADB): | $150 million | 5 years |
| Total Current Package: | $350 million | 5 years |
Both facilities will be drawn in tranches between January and March 2026, providing the company with flexible access to capital over the specified period. The funding falls under Piramal Finance's Sustainable Finance Framework, highlighting the company's commitment to responsible lending practices.
Strategic Capital Deployment
The raised capital will be strategically directed toward key growth segments that align with India's financial inclusion objectives. The company plans to focus on affordable housing finance, MSME credit, and lending to women borrowers and entrepreneurs specifically in tier-2 and tier-3 cities. This targeted approach positions Piramal Finance to serve underserved market segments while supporting economic development in smaller urban centers.
Expansion Plans and Additional Funding
Piramal Finance is actively pursuing further multilateral funding opportunities, with advanced discussions underway to raise an additional $150 million from other development finance institutions. If successful, this would bring the company's total multilateral funding to $500 million by the end of the fiscal year, significantly strengthening its capital base for expansion initiatives.
Recent Fundraising Activity
The current multilateral financing follows Piramal Finance's substantial external commercial borrowing activity in FY25, totaling $815 million. This previous fundraising comprised a $450 million US dollar bond and $365 million in syndicated bank loans. External commercial borrowings now represent approximately 9.00% of the company's total borrowings, indicating a well-diversified liability structure.
Business Scale and Market Position
Piramal Finance operates with significant scale across India's financial services landscape. The company serves over 5.20 million customers across 13,000-plus pin codes through its network of 517 branches. As of Q2 FY26, the company reported assets under management of ₹91,477.00 crore, demonstrating its substantial market presence.
Managing Director and CEO Jairam Sridharan emphasized that the partnership with development finance institutions aligns perfectly with the company's strategic focus on underserved segments while helping diversify its liability structure. The shares of Piramal Finance Limited were trading at ₹1,833.20, down by ₹14.50 or 0.78% on the NSE at 10:20 am.
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