Shriram Transport Finance Company Limited, one of the largest asset financing NBFC in the country, with a primary focus on financing pre-owned commercial vehicles is proposing a public issue of upto Rs. 1,350 crore by issuing Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each.
The company is coming out with its Tranche 2 Issue of NCDs having a base size of Rs. 300 crore with an option to retain additional amount up to Rs. 1,050 crore from oversubscription, if any, aggregating to a Tranche 2 Issue Size of upto Rs. 1,350 crore.
The Issue will open for subscription on October 15, 2018 and is scheduled to close on October 29, 2018, with an option of early closure, and/or extension, as mentioned in the Tranche 2 Prospectus.
The proposed NCDs under this Issue 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 carrying very low credit risk.
The funds raised through this Issue will be used for onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company and for general corporate purposes.
Options of investment tenors are 3, 5 and 10 years, with monthly, annual & cumulative payment options.
These NCDs, bearing a fixed rate of interest, are being offered under seven different series:
Series I and II are monthly interest payment options, having tenure of 5 years and 10 years respectively, and the Coupon shall be 9.12% p.a. and 9.30% p.a. respectively.
Series III, Series IV and Series V, interest payable annually, have tenure of 3 years, 5 years and 10 years, respectively, and the coupon shall be 9.40% p.a., 9.50% p.a. and 9.70% p.a. respectively.
Series VI and VII are cumulative options, having tenure of 3 years and 5 years respectively, where face value and interest accrued are paid at the end of the tenure. Effective yield shall be 9.40% p.a. and 9.50% p.a. respectively.
