India Maritime Lender Plans $1 Billion Fundraise by FY27
India's Sagarmala Finance plans to raise $1.08 billion by FY27 to fund port and shipbuilding projects. The lender will issue its first bonds this June.
Sagarmala Finance Corp., the first maritime-focused lender in India, has announced plans to raise up to 100 billion rupees ($1.08 billion) during the 2027 fiscal year. The state-owned non-banking financial company aims to utilize these funds to expand its lending operations for ports, shipbuilding, and waterways infrastructure.
Managing Director L.V.S. Sudhakar Babu stated in a recent interview that the capital will be sourced through a combination of bonds, term loans, and foreign-currency borrowings. The firm is expected to enter the bond market for the first time in June of this year. This move follows the company receiving its non-banking finance company license in June 2025.
Currently, the organization administers the Maritime Development Fund, a 250 billion-rupee government initiative. This fund includes a 50 billion-rupee Interest Incentivisation Fund designed to provide interest subsidies to borrowers in the maritime sector. The company's lending activity is already gaining momentum, with 111 billion rupees in total sanctions to date, including 37 billion rupees for greenfield port projects in Andhra Pradesh.
For the fiscal year ending March 2027, the lender targets disbursements between 80 billion and 90 billion rupees. To support this expansion while maintaining a stable debt-to-equity ratio, the firm is seeking a 20 billion-rupee equity infusion from the government.
As per industry standards, we can leverage up to seven to eight times our capital base.
Should the equity infusion face delays, the company is prepared to explore alternative funding avenues to maintain its growth trajectory.
In the event the proposed equity infusion takes some time, we may consider raising funds through perpetual bonds later in the year.
Financial stability for the lender is underscored by its high credit standing. The company has received an AA+ credit rating from major agencies, including CARE RATINGS LTD and India Ratings.
