Strengthening Economic Ties: A New Chapter for Italy and India

In a move poised to considerably enhance trade relations, SACE (Italy’s export credit agency) is deepening it’s collaboration with Shriram Finance Limited (SFL), a leading non-banking financial company (NBFC) in India’s retail sector. This strategic alliance aims to bolster Italian exports by providing crucial financial support to Indian businesses.

Massive Financial Injection: $500 Million credit Line Secured

SACE has guaranteed a significant foreign currency loan exceeding $500 million for Shriram Finance Limited. this financial backing is specifically designed to facilitate the purchase of Italian vehicles,both new and used,by Indian companies. This initiative underscores SACE’s commitment to fostering growth in key emerging markets while concurrently promoting Italian products.

This operation represents a milestone that testifies to our solid ability to move in global financial markets and to establish strategic partnerships with the main international financiers. The collaboration with SACE and the main global banks strengthen the trust that international financial institutions put in the vision and operational solidity of SCL. credit line not only allows us to support the financing of Italian vehicles, but also strengthens our commitment for financial inclusion and economic development.

Umesh Revankar, executive vice -president of Shriram Finance Limited

A “Social Loan” with a Purpose: Financial Inclusion at its Core

The financing guaranteed by SACE is structured as a “social loan,” emphasizing financial inclusion for underserved segments of the Indian population. This includes providing access to credit for rural communities, supporting female entrepreneurship projects, and empowering small and micro-enterprises. This approach aligns with global trends towards responsible and impactful investing, where financial institutions are increasingly focusing on social and environmental outcomes alongside financial returns. According to a recent report by the World Bank, access to finance is a critical barrier for small businesses in developing economies, hindering their growth and potential contribution to economic development.

International Financial institutions Rally Behind the Initiative

The operation has garnered significant interest from major international financial institutions, including Deutsche Bank, KFW Ipex-Bank, ING Bank, HSBC, and JP Morgan. Their participation underscores the confidence in the partnership between SACE and Shriram Finance Limited and the potential for positive economic impact in India.

Building on a Successful Foundation: A History of Collaboration

The collaboration between SACE and Shriram finance has been steadily growing since 2019. Previous initiatives have already facilitated the export of over €100 million worth of Italian products to India. This new credit line is expected to further strengthen this alliance, supporting both Italian excellence and Shriram Finance’s social initiatives in India.

Our collaboration with Shrram Finance has consolidated starting from 2019, when we have created our first push facility. since then, over 100 million euros equivalent of Italian products have been supported through this partnership. This new credit line, unique in its kind, will further strengthen our alliance, supporting our alliance, supporting our alliance, supporting our alliance, supporting our alliance, supporting our alliance, time itself the Italian excellence and the social initiatives of Shrram Finance in India.

Gautam Bhansali, Southern India and Asia Manager of Sace

Looking Ahead: Continued Growth in Italian Exports and Indian Development

This strategic partnership between SACE and Shriram Finance Limited represents a significant step towards fostering stronger economic ties between Italy and India. By providing crucial financial support and prioritizing social inclusion,this initiative is poised to drive growth in Italian exports while simultaneously contributing to the economic development of India.