Shriram Finance to enter debt market with NCD issue

Shriram Transport Finance Company Ltd (STFC) said that it has entered the debt capital market with a public issue of Secured Non Convertible Debentures (NCD) of face value of Rs 1,000 each.

It aggregates up to Rs 300 crore with an option to retain over-subscription up to Rs 300 crore for issuance of additional NCDs aggregating to a total of up to Rs 600 crore, company officials said.

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The issue will be open for subscription from today to 10 August with an option to close on such earlier date or extended date as may be decided at the discretion of the duly authorised committee of directors of the company subject to necessary approvals.

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The NCDs under this issue have been rated ‘Crisil AA/Stable’ by Crisil for an amount of up to Rs 600 crore and ‘CARE AA+’ by CARE for an amount of up to Rs 600 crore. The NCDs offered through the prospectus dated 16 July 2012 are proposed to be listed on the NSE and the BSE.

The funds raised through this issue, after meeting the expenditure of and related to the issue, will be used for STFC’s various financing activities, including lending and investments, for repaying existing loans and for business operations including capital expenditure and working capital requirements, officials said.

PTI