Bajaj Finance, India’s largest shadow bank, is seeking to borrow $500 million through a syndicated loan to fuel its growth plans. The company, which has been expanding its lending operations rapidly, aims to use the funds to diversify its funding sources and reduce its dependence on domestic borrowings.
The loan, which is expected to be finalized in the coming weeks, will have a tenure of three to five years and will be offered at a competitive interest rate. Bajaj Finance has already received commitments from several international lenders, including banks and financial institutions.
This borrowing plan is part of Bajaj Finance’s strategy to tap into foreign markets to raise funds, which will help the company to reduce its cost of borrowing and improve its financial flexibility. The company has been growing its loan book at a rapid pace, driven by demand for consumer loans, mortgages, and small business loans.
Bajaj Finance’s move to borrow from international markets is also seen as a vote of confidence in the company’s financial health and growth prospects. The company has been consistently delivering strong financial performance, with a net profit growth of over 50% in the last quarter.
The borrowing plan is subject to regulatory approvals and market conditions. If successful, it will be one of the largest syndicated loans raised by an Indian non-banking financial company (NBFC) in recent times.