STFC to raise Rs 13.5 bn through NCDs, issue to open on October 15

It is part of the company's Tranch 2 issue of NCDs, with a base size of Rs 3 bn and an option to retain up to Rs 10.5 bn from oversubscription

Shriram Transport Finance Company has proposed to raise up to Rs 13.5 billion through secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each.   

The proposed issue has been rated 'CRISIL AA+/Stable' by CRISIL and 'IND AA+: Outlook Stable' by India Ratings and Research. The funds will be used for onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the company. 

The NCDs have a fixed rate of interest, with seven different series. They are of tenures of three, five and 10 years, with monthly, annual and cumulative payment options.  

The NCDs will