Shriram Transport Finance raises $ 475 million through social bonds

Insight Online News

New Delhi, Jan 11 : Non-banking finance company Shriram Transport Finance on Tuesday said it has raised $ 475 million through social bonds from international bond markets.

The proceeds from the bond issue would be used for employment generation, including through micro, small, and medium-sized enterprise (MSME) financing, the company said.

“On the back of strong investor interest, the transaction was launched with an initial price guidance of around 4.45%. Following a strong book building, supported by high quality long only investors, the Company was able to tighten pricing by 30bps to 4.15%,” Sriram Finance said.

Citigroup, Deutsche Bank, HSBC, J.P. Morgan and Standard Chartered Bank acted as Joint Global Coordinators and Joint Bookrunners.

Axis Bank, Barclays, BNP Paribas, Credit Suisse, DBS Bank Ltd, Emirates NBD Capital, MUFG and SMBC Nikko acted as Joint Bookrunners for this transaction.

Commenting on the bond issuance, Umesh Revankar, Vice Chairman and MD of Shriram Transport Finance said that the company is committed to advancing and improving the communities it serves and building an equitable and inclusive future for our ecosystem.

“The pandemic has magnified the underlying social issues and the need to build back better, which social bonds can address. We are seeing rising demand from investors for impact investing and STFC is delighted to see such strong investor appetite for our social bonds from the global investor community. The social impact is similar to our priority sector with some strict exclusions and we are committed to financing towards socioeconomic necessities with large multiplier effects,” said Revankar.


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