IPO-bound Avanse raises $200mn through ECB

Mumbai: IPO-bound Education-focused NBFC Avanse Financial Services has raised a $200 million multi-currency syndicated loan through the External Commercial Borrowing (ECB) route. The facility was jointly led by DBS Bank, through its GIFT City IFSC unit, and HSBC India as mandated lead arrangers and book-runners.

The transaction, classified as a social loan, drew participation from banks in Taiwan, Japan, Singapore, Sri Lanka, the UAE, and India. It comprised commitments of $141.3 million in US dollars and a yen tranche equivalent to $58.7 million. The funds will be used to support students from economically weaker sections.

Avanse said the ECB route strengthens its funding resilience while deepening partnerships with global lenders. “Lasting success depends not only on strong financial performance, but also on the positive, measurable impact we create for our social environment, the communities we serve, and all stakeholders connected to our journey,” said Amit Gainda, MD & CEO of Avanse.

DBS Bank India’s Divyesh Dalal said the transaction highlights the bank’s focus on purpose-driven banking: “This also underscores DBS’ commitment to purpose-driven banking and our focus on supporting sectors that create meaningful impact.” Ajay Sharma of HSBC India added that the deal reinforces the bank’s commitment to Indian financial institutions: “This underscores our commitment to support companies, drive meaningful and transformative impact.”

Founded in 2013, Avanse is backed by investors including Warburg Pincus, Kedaara Capital, Mubadala Investment Company, IFC and Avendus. The NBFC had assets under management of Rs 18,985 crore as of March 2025, with a large share directed towards overseas education loans. It supports students across 1,650 institutions in more than 50 countries, with nearly 80% of overseas lending focused on STEM courses.

Avanse offers financing in three segments: loans for students pursuing courses abroad, domestic education loans including for skilling and executive programs, and collateral-backed loans for private institutions, especially schools in tier II and beyond cities.

The company has been in the spotlight after raising Rs 1,100 crore from Mubadala and Avendus Future Leaders Fund II last year, and is preparing for a planned Rs 4,000 crore IPO.


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