MUMBAI: Shriram Transport Finance has raised $250 million in an overseas bond sale, saving about 50 basis points in funding costs in the latest offer that coincided with plunging global yields.
This bond sale is an extension of its earlier issuance in April, when Shriram raised $500 million, offering 5.95% on bonds that are due to mature in 42 months.
Globally, bond yields are falling. Debt in Germany, France and some other European neighbourhoods is yielding negative now.
The latest series of bonds yielded 5.37 %, compared with the initial guidance at 5.65%. These bonds mature after 3 years.
"We find the time right to tap cheap overseas credit," said Umesh Revankar, managing director at Shriram Transport Finance. "This additional borrowing helped us save costs, while investors trusted our business model despite tough times. Demand was very good and the order book was 2.5 times. We retained the subscription of $250 million," he said.
HSBC helped the company raise the funds.
“The strong investor following Shriram built from its first two issuances, and the robust performance of its existing USD bonds despite a challenging Indian NBFC backdrop, gave a further boost to this issuance," said Chetan Joshi, head of debt capital markets, HSBC India.
“Positive market tone is being driven by the dovish US rates backdrop and enhanced investor interest in India after the governments announcement that it plans to issRead More – Source
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