India's Shriram Finance secures $100 million loan from Asian Development Bank

BENGALURU (Reuters) -Indian shadow lender Shriram Finance Ltd said on Friday it had secured a five-year loan worth $100 million from the Asian Development Bank to provide credit to its customers towards purchase of new and used vehicles across India.

Shriram Finance, which currently has about 1.71 trillion rupees of assets under management, said it had also raised $250 million from US Development Finance Corporation and $475 million through a 144A Bond from the international market earlier this year.

The lender is a merged entity of Shriram City Union Finance and Shriram Transport Finance.

The company said proceeds would be used for "vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles", besides providing financial support to women entrepreneurs and under-developed states.

New shares of the merged entity tumbled during their market debut on Thursday.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Krishna Chandra Eluri)