Hero FinCorp: Hero FinCorp plans to raise $200-million loan amid IPO delay

Mumbai: Hero FinCorp (HFCL), the lending arm of two-wheeler giant Hero MotoCorp, is looking to raise $200 million through a syndicated loan and has mandated DBS Bank to lead the deal, according to people familiar with the matter. The non-bank lender recently held a roadshow in Taipei to gauge investor appetite, the people said, asking not to be identified.

The fundraise comes as Hero FinCorp’s planned ₹3,668 crore IPO faces delays in receiving regulatory approvals, slowing its capital raising plans. “The dollar loan is being raised to support the company’s loan business,” a source said. “It has mandated DBS Bank to syndicate loan, which has started road shows in Taipei.”

A DBS spokesperson declined to comment while Hero FinCorp did not respond to requests for comment. Hero FinCorp’s proposed IPO is facing delays as the company awaits regulatory clearance. ET had reported the IPO is facing delays as Sebi is looking into “some breach of rules” before granting approval.

The dollar loan is likely to be structured under a five- and 3.25-year tenor. In FY25, NBFCs like Shriram Finance, Piramal Finance, Muthoot Finance, and Tata Capital tapped dollar bond markets to diversify funding sources and reduce borrowing costs. While pricing for Hero FinCorp’s loan is yet to be disclosed, Piramal Finance raised $150 million in October 2024 via global bonds at a 7.078% yield with 3.32-year tenor.