Shriram Transport to raise Rs 5k cr in Q4 by securitisation of loans
Securitisation is the process of conversion of a loan into marketable securities for raising cash by selling them to other investors
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Truck financier Shriram Transport Finance Company will raise funds amounting to Rs 5,000 crore in the last quarter of financial year 2018-19 (Q4FY19) through securitisation of its loans. It has raised Rs 5,300 crore via securitisation in Q3FY19, said Umesh Revankar, chief executive officer (CEO) of Shriram Transport.
Securitisation is the process of conversion of a loan into marketable securities for raising cash by selling them to other investors.
The firm also plans to raise $750 million in foreign currency funding in FY20, which is the threshold set by the Reserve Bank of India in terms of foreign investment in any finance company. It has already raised $750 million in this fiscal year (FY19).
The company on Wednesday said it has raised $400 million via dollar bond sale after the regulator eased norms for finance companies to raise funds overseas. This was the company’s maiden dollar bond issue. It had earlier placed masala bonds.
For the dollar bond sale, Deutsche Bank, HSBC, ING and Standard Chartered Bank acted as joint global coordinators, with Barclays, Citi, Emirates NBD Capital and J.P. Morgan acting as joint lead managers.
Securitisation is the process of conversion of a loan into marketable securities for raising cash by selling them to other investors.
The firm also plans to raise $750 million in foreign currency funding in FY20, which is the threshold set by the Reserve Bank of India in terms of foreign investment in any finance company. It has already raised $750 million in this fiscal year (FY19).
The company on Wednesday said it has raised $400 million via dollar bond sale after the regulator eased norms for finance companies to raise funds overseas. This was the company’s maiden dollar bond issue. It had earlier placed masala bonds.
For the dollar bond sale, Deutsche Bank, HSBC, ING and Standard Chartered Bank acted as joint global coordinators, with Barclays, Citi, Emirates NBD Capital and J.P. Morgan acting as joint lead managers.