Credila, which the erstwhile HDFC sold to quicken its merger with HDFC Bank, is looking to raise up to $600 million in loans from foreign lenders after its initial share sale, people familiar with the fundraising at the education loan provider told ET. DBS, MUFG and Sumitomo Mitsui Banking Corp (SMBC) are among the banks in discussions to participate in the syndicate, they said.

The foreign currency debt, expected to be structured under the external commercial borrowing (ECB) framework, is being marketed at spreads of 135-150 basis points over the relevant secured overnight financing rate (SOFR) benchmark, said the people cited above.

The loan could be raised in the range of 5.5-6%. It will be US dollar borrowing. The rupee has depreciated more than 2% against the dollar so far in 2025.

The company, which filed its draft IPO papers on June 26 to raise ₹5,000 crore, has been garnering funds through term loans and non-convertible debentures. However, ECBs have grown in recent years.

Credila’s financing base has expanded with the number of lending relationships climbing to 29 as of March, from 19 two years earlier. Offshore borrowings, zero two years ago, now account for 18.4% of total debt.

Credila Financial Services, formerly known as HDFC Credila, provides education loans to Indian students. The company was a wholly-owned subsidiary of HDFC until the lender’s merger with HDFC Bank in July 2023.

In March 2024, HDFC Bank sold its stake to EQT’s Kopvoorn BV and ChrysCapital entities, after which Credila became a subsidiary of Kopvoorn, which held 63.96% as of March 2025. The company reported a rise in average borrowings to ₹32,700 crore in FY25 from ₹20,067 crore a year earlier, driving its average cost of debt up to 8.85% from 8.63%, it said in its draft IPO prospectus.