₹25k crore borrowing limit approved for India's first maritime NBFC

₹8,000 crore earmarked to be raised for FY25, SMFCL to mobilise funds through leading banks, financial institutions and bond issuances

India’s first maritime non-banking finance corporation (NBFC) – Sagarmala Finance Corporation Limited (SMFCL) – has approved an overall borrowing limit of Rs 25,000 crore, with Rs 8,000 crore earmarked to be raised for the current financial year (FY25) to start operations, the newly-formed public sector undertaking (PSU) announced on Saturday.

 

The decision was taken during the company’s annual general meeting. To meet this requirement, SMFCL will mobilise funds through leading banks, financial institutions and bond issuances in accordance with its resource mobilisation plan, enabling the corporation to commence lending operations shortly.

 

SMFCL is currently in discussions with major financial rating agencies, the company said. With a positive sector outlook and a robust project pipeline, the corporation is expected to secure ratings in the apex scale, which will further enhance investor confidence and help optimise interest costs, it added.

 

The company said that it is also poised to play a pivotal role in advancing India’s shipbuilding capabilities, contributing to the nation’s ambition of establishing a strong position in the global shipbuilding arena.

 

“To meet diverse requirements across the sector, SMFCL will offer customised loan products to eligible government and private sector entities, covering short-term, medium-term and long-term financing, along with support for cash-flow mismatches and non-fund-based instruments,” it said.

 

The NBFC, launched to address gaps in the financing ecosystem of the blue economy, has outlined a comprehensive financing framework to support the entire maritime value chain. 

 

This includes funding for ports, port connectivity projects, port-led industrialisation, coastal community development, coastal shipping and inland waterways, with particular emphasis on vessel financing.