Shriram Transport Finance raises $400mn from International Bond Markets

India’s largest asset financing company Shriram Transport Finance Company Limited (STFC) has successfully priced a $400 million Fixed Rate Senior Secured Reg S Bond for a 3 year tenor at 5.70 per cent. The STFC’s debut bond transaction also marks the first international bond by a private sector Indian NBFC. The Company has previously successfully placed Masala bonds.

Speaking on the landmark issuance Umesh Revankar, Managing Director and CEO of Shriram Transport Finance Company said, “We are overwhelmed by the strong response of the global investor community to our credit story. This transaction would help us further diversify our sources of funding.”

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The Managing Director and CEO of the company further informed that the STFC engaged around 50 investors during an extensive deal roadshow across Singapore, Hong Kong, and London. Backed by the strong investor feedback, the transaction was launched with an initial price guidance of 6 per cent area. Following a strong book build supported by high-quality real money investors, the company was able to tighten pricing by 30bps to 5.70 per cent. 

The final order book was in excess of $1 bn with over subscription of more than 2.5 times. The transaction witnessed 67 per cent participation from Asia and 33 per cent from EMEA with 81 per cent investment from asset managers, 13 per cent from banks and 6 per cent from private banks and others.

Deutsche Bank, HSBC, ING and Standard Chartered Bank acted as Joint Global Coordinators along with Barclays, Citi, Emirates NBD Capital and J.P. Morgan acting as Joint Lead Managers.