Hero FinCorp (HFCL), the financing division of the prominent two-wheeler manufacturer Hero MotoCorp, is aiming to secure $200 million through a syndicated loan. DBS Bank has been appointed to facilitate this transaction, as reported by sources acquainted with the situation. Recently, the non-banking financial company conducted a roadshow in Taipei to evaluate investor interest, according to these sources who wished to remain anonymous.
This fundraising effort arises amid delays in Hero FinCorp’s planned ₹3,668 crore Initial Public Offering (IPO), which is pending regulatory approvals, thereby hindering its capital acquisition strategies. According to a source, the primary purpose of the dollar loan is to bolster the company’s loan business, and DBS Bank has been tasked with organizing the syndication of the loan. The roadshows have commenced in Taipei.
Both DBS and Hero FinCorp have opted not to comment on the matter. Hero FinCorp’s pending IPO is encountering setbacks as the Securities and Exchange Board of India (Sebi) investigates potential regulatory breaches before granting its approval.
The structure of the dollar loan is anticipated to feature a tenor of five and 3.25 years. Non-Banking Financial Companies (NBFCs) such as Shriram Finance, Piramal Finance, Muthoot Finance, and Tata Capital ventured into dollar bond markets in FY25 to diversify their funding origins and minimize borrowing expenses. While the pricing details for Hero FinCorp’s loan have not yet been revealed, it is noted that Piramal Finance secured $150 million in October 2024 via global bonds with a 7.078% yield over a 3.32-year tenor.
