Shriram Transport Finance Thursday said it will raise up to Rs 700 crore through a public issue of bonds.
The non-banking finance company (NBFC) said it will issue secured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each for its proposed public issue of bonds of up to Rs 700 crore.
"The company is coming out with its tranche 3 issue of NCDs having a base size of Rs 200 crore with an option to retain additional amount of up to Rs 500 crore from oversubscription, if any, aggregating to up to Rs 700 crore," it said in a release.
The issue will open for subscription on January 7 and close on January 31 with an option of early closure, and/or extension.
Shriram Transport said the funds raised through this issue will be used for onward lending, financing and for repayment/pre-payment of borrowings and for general corporate purposes.
The proposed NCDs have been rated CRISIL AA+/stable by CRISIL and IND AA+/ outlook stable by India Ratings and Research.
These ratings indicate high degree of safety regarding timely servicing of financial obligations and carry very low credit risk, the company said.
Options of investment tenors are 3, 5 and 10 years, with monthly, annual and cumulative payment options, it said further.
The fixed rate NCDs are being offered in seven different series and senior citizens under category III and IV are entitled to additional incentive of 0.25 per cent per annum across all series, it added.
The NCDs are proposed to be listed on BSE and NSE.
Axis Bank, A K Capital Services, Edelweiss Financial Services, JM Financial and Trust Investment Advisors are the lead managers for the issue.
The company focusses on financing pre-owned commercial vehicles.
Disclaimer: No Business Standard Journalist was involved in creation of this content
