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    Shriram Transport raises $500 million via offshore bonds

    Synopsis

    The company is said to have received subscription demand for nearly $2 billion from long-term asset managers in the current round of debt sale.

    Agencies
    The latest tranche of bonds carried a coupon of 5.375%, with three and a half year maturity. The pricing could well be tighter at the close of ongoing subscriptions by about 27 basis points.

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    Non-bank lender Shriram Transport Finance, which helps fund used trucks for freighting companies in India, raised $500 million from global investors in the third such exercise overseas in the past six months.

    The company is said to have received subscription demand for nearly $2 billion from long-term asset managers in the current round of debt sale.

    ET had reported on December 25 that the company was planning to raise money in offshore bonds.

    The latest tranche of bonds carried a coupon of 5.375%, with three and a half year maturity. The pricing could well be tighter at the close of ongoing subscriptions by about 27 basis points.

    Barclays, Deutsche Bank, JP Morgan, and Standard Chartered Bank are among the bankers that helped raise the money.

    These instruments are called social bonds wherein dedicated investors, known as ESG (Environmental, Social and Governance), buy such debt.

    “The successful pricing of Shriram’s inaugural international social bonds suggests the depth of international debt capital markets for quality credits,” said Sameer Gupta, Head of India Debt Capital Markets at Deutsche Bank.

    The company is targeting double-digit loan growth this financial year as it expects a surge in credit growth in the January-March quarter, compared with the past nine months.
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    The Economic Times