Shriram Transport Finance to raise $250 million from global markets

Shriram Transport Finance Company will raise up to $250 million from global markets to augment its on-lending programme.

The bond issuance committee of the company on Thursday approved the issuance of $250 million (over Rs 1,700 crore) senior secured notes under its $2000 million global medium term note programme, Shriram Transport Finance Company (STFC) said in a regulatory filing.

The company will use the proceeds for onward lending and other activities as may be permitted by the ECB directions, it said.

The date of issuance of the bonds is July 17, 2019 and the maturity date is 24 October, 2022.

The coupon rate on the bonds is 5.950 per cent per annum payable semi-annually.

Shriram Transport Finance Company (STFC) said it plans to list the bonds on the Singapore Exchange Securities Trading.

The non-banking financial company is mainly engaged in vehicle financing business.

It also has presence in consumer finance, life and general insurance, stock broking, chit funds and also distributes financial products like life and general insurance and mutual funds.

Stocks of STFC traded 0.76 per cent higher at Rs 1,051 on the BSE.