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Shriram Transport Finance raises USD 400mn from International Bond Markets

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Capital Market
Last Updated : Feb 21 2019 | 9:50 AM IST
Shriram Transport Finance Company has successfully priced a USD 400 million Fixed Rate Senior Secured Reg S Bond for a 3 year tenor at 5.70%. 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.

The Company 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 6.000% 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%.

The final order book was in excess of USD 1 bn with oversubscription of >2.5x. The transaction witnessed 67% participation from Asia and 33% from EMEA with 81% investment from asset managers, 13% from banks and 6% from private banks and others.

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First Published: Feb 21 2019 | 9:30 AM IST

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