SMFG India Credit Co. Ltd. (formerly Fullerton India Credit Co. Ltd.) has raised ₹600 crore from Sumitomo Mitsui Banking Corporation (SMBC), Tokyo, by issuing its maiden Perpetual Debt Instrument (PDI) via the External Commercial Borrowing (ECB) route.
This issuance of PDI has bolstered the non-banking finance company’s (NBFC) tier 1 capital base, reflecting the continuous and robust support from its parent company, Sumitomo Mitsui Financial Group (SMFG), according to SMFG India Credit Co’s (SMICC) statement .
Pankaj Malik, CFO, SMICC said, “With this issuance, the capital adequacy ratio improves by 160 basis points. Since these bonds are perpetual, the issuance also strengthens asset liability profile.”
As of September-end 2023, the NBFC’s capital adequacy ratio stood at 18.1 per cent.
Japan-based SMFG holds a majority, 74.9 per cent stake in SMICC. Fullerton Financial Holdings, which is a wholly-owned independent portfolio company of Temasek, holds the balance 25.1 per cent stake.
As of September-end, the NBFC had assets under management aggregating Rs 39,800 crore, 872 distribution points and 36 lakh customers across the country.
The NBFC’s primary services include financing of SMEs for working capital and growth, loans for commercial vehicles and two-wheelers, home improvement loans, loan against property, personal loans, working capital loans for urban self-employed, loans for rural livelihood advancement, rural housing finance and financing of various rural micro enterprises.