This maritime NBFC wants to raise ₹8,000cr this fiscal
What's the story
Sagarmala Finance Corporation Limited (SMFCL) has announced its plan to raise ₹8,000 crore in the current financial year. The funds will be sourced from banks, financial institutions, and bonds. The decision was approved during a recent annual general meeting of the corporation. SMFCL was registered as a Non-Banking Financial Company with the Reserve Bank of India on June 19, 2023.
Financial strategy
SMFCL's borrowing limit and funding strategy
The board of SMFCL has also approved an overall borrowing limit of ₹25,000 crore. The corporation plans to raise funds from various banks and financial institutions in line with its resource mobilization plan. It will also issue bonds as part of this strategy. The primary goal is to start lending operations soon, thereby boosting India's maritime sector significantly.
Sector impact
SMFCL's role in India's maritime sector
Under the Ministry of Ports, Shipping and Waterways, SMFCL aims to fill financial gaps in the maritime sector. The corporation intends to facilitate investments and provide sector-specific financial products for port authorities, shipping companies, MSMEs (Micro, Small and Medium Enterprises), start-ups as well as institutions offering maritime education. This move is part of a broader effort to modernize India's ports and shipping industry.