Merrill Lynch buys Rs 924cr Shriram truck portfolio

Shriram Transport Finance Company (STFC) has sold a part of its truck financing portfolio worth $200 million to DSP Merrill Lynch Capital.

The first tranche of $100 million has already been disbursed on September 7 and the next tranche of $100 million will be disbursed in the third quarter of the current fiscal, the company said in a statement here.

Commenting on the deal, R Thygarajan, chairman of Shriram Group, said the funds channelised through Merill Lynch would help small truck owners to get easier access to funds, thereby helping the modernisation of trucking fleet of the country.

"The strategic relationship with Merrill Lynch will enable the company to enhance its market share significantly in the truck financing business," Arun Duggal, chairman of STFC, said.

"This deal will facilitate Shriram in empowering small truck owners who constuitute more than 75% of the truck population," Rajiv Garg, global head (structured finance & investments) of DSP Merrill Lynch Capital, said.