INSUBCONTINENT EXCLUSIVE:
Mumbai: Shriram Transport Finance Company (STFC) is planning to raise up to $500 million (Rs 3,560 crore) via an overseas bond sale in the
New Year, amid signs of picking up credit demand, three people with direct knowledge of the matter said.
The non-banking finance company
that primarily funds second-hand truck purchases looks to sell five-year bonds for the first time
ratings companies Fitch and S-P have rated STFC at BB+, in the high-yield category
bankers are helping the company arrange the proposed sale
Formal appointments of bankers should happen soon
to global investors including in the US
Such debt securities may also have three-year maturity.
Earlier this year, Shriram Transport tapped the overseas credit market through three
three-and-a-half-year maturity
That paper is now yielding 4.87 per cent in the secondary market, as the price has gone higher
said another executive involved in the exercise.
STFC managed Rs 1.08 lakh crore assets under management at end of September, compared with
Rs 1.04 lakh crore a year earlier.
The company aims to increase its share of external commercial borrowings after mutual funds turned averse