Shriram Finance to raise $150 mln via senior secured notes

The NBFC announced that its banking and finance committee has approved issuance of $150 million senior secured floating rate notes due 2026 on private placement basis.

The notes will be issued on 29 March 2023 and will be redeemed on 29 September 2029. It will be listed on Indian International Exchange (INX).

The company will use the proceeds in accordance with SFL's social finance framework, onward lending and other activities as may be permitted by the RBI ECB guidelines.

Meanwhile, the company's allotment committee-NCDs approved and allotted senior, secured, rated, listed, redeemable, taxable non-convertible debentures (NCDs) worth Rs 341 crore on private placement basis.

The NCDs having face value of Rs 1 lakh each and coupon rate of 9% p.a., will be redeemed on 24 June 2024. It will be listed on Wholesale Debt Market (WDM) segment of BSE. The proceeds of the issue will be utilized for onward lending to grow the asset book, financing vehicles such as commercial vehicles, two-wheelers vehicles, cars, home loans, gold loans, personal and small business loans, refinancing of existing debt, other general purposes of the company.

Shriram Finance is primarily engaged in the business of financing commercial vehicles. It also provides loans for equipment and other business purposes. It also accepts deposits from the public.

The company's consolidated net profit surged 162.2% to Rs 1,798.88 crore on 61.6% jump in total income to Rs 7,809.39 crore in Q3 FY23 over Q3 FY22.

The scrip declined 2.39% to end at Rs 1,231.65 on Friday, 24 March 2023.

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