Shriram Finance trades 1.4 pct higher after board approves to raise USD 500 mn

Asset financing firm Shriram Transport Finance Company Tuesday said it will raise USD 500 million (approx Rs 3,475.50 crore) through the issuance of secured notes. Shriram Transport Finance said it plans to use the proceeds from the fundraising for onward lending and other activities as may be permitted by the External Commercial Borrowings (ECB) directions.

"The bond issuance committee has approved the issuance of USD 500,000,000 (approx Rs 3,475.50 crore) senior secured notes under the USD 2,000,000,000 global medium-term note programme...The company is signing the pricing supplement in this regard," Shriram Transport Finance Company said in a BSE filing. Shriram Transport Finance Company said these notes, have tenure of 3.5 years and carry an interest rate of 5.95 per cent per annum payable semi-annually. They will be listed on the Singapore Exchange Securities Trading Ltd. Shares of Shriram Transport Finance Company were trading 1.40 per cent higher at Rs 1,238.95 apiece on BSE.