Muthoot Microfin Limited has announced a syndicated social term loan of USD 75 million in the form of an ECB (External Commercial Borrowing). The deal was participated by Standard Chartered Bank, Doha Bank, RakBank (National Bank of Ras Al Khaimah), Union Bank of India (UK) Ltd., and Canara Bank, GIFT City. Standard Chartered Bank was the sole arranger of the funds and acted as the Social Loan Coordinator for the transaction- helping Muthoot Microfin put in place a Social Financing framework which carries a Second Party Opinion from S&P Global.

The USD 75 million social loan facility has a greenshoe option of USD 25 million and the funds raised will be utilized for on-lending and financing of eligible social loans. The loan has been tied up for a 3 years and 3 months tenor and benchmarked to a 3-month Term SOFR (Secured Overnight Financing Rate) with a margin of 2.85%, which will be serviced at a quarterly frequency. The facility is fully hedged for principal and interest without any forex risk to the company.

Additional banks are expected to join later through the greenshoe portion.