Shriram Transport Finance raises Rs 900 cr by issuing bonds

New Delhi: Shriram Transport Finance Company (STFC) on Friday said it has raised Rs 900 crore by issuing bonds on a private placement basis and the proceeds from the issue will be used for further lending and other business purposes. The allotment committee of the company in its meeting on Friday approved and allotted senior secured rated, listed, redeemable and non-convertible debentures (NCDs) of a face value of Rs 10 lakh each on a private placement basis, the company said in a regulatory filing.

The company said a total of 9,000 NCDs were allotted with a face value of Rs 10 lakh each, aggregating to the issue size of Rs 900 crore.

The bonds, bearing coupon at 8.56 per cent per annum, are set to mature on February 25, 2032.

"A total of 100 per cent of the proceeds of the issue shall be utilised towards onward lending and/or refinancing existing debt and/or general corporate purpose," it added.

STFC said the company's board of directors will hold a meeting on March 5 to consider the recommendation of second interim dividend for the financial year 2021-22.