Shriram Fin Secures $500M via Bonds

25 Sep 2024 , 02:16 PM

Shriram Finance generated $500 million by selling a three-and-a-half-year fixed-rate dollar bond at 6.15% to investors around the world. Strong investor demand enabled the corporation to price the bond significantly lower than its initial projection of 6.50%.

“We witnessed over $1.5 billion in demand, which helped to pressure pricing at the bottom end of the band. Shriram is a well-known name in the international market, therefore it is probable that they will look at another issue soon,” said a source acquainted with the deal to ET.

The US Federal Reserve dropped its benchmark interest rate by 50 basis points last week, the largest step since Covid, as its focus shifts away from inflation and towards growth. As a result, the difference between US treasuries and emerging market bonds such as India has narrowed. Indian enterprises, such as Shriram, are expecting to capitalise on the additional liquidity given by the US action.

Shriram informed the stock exchanges on Monday that it had nominated Barclays, BNP Paribas, Citigroup, DBS Bank Ltd, Deutsche Bank, Emirates NBD, HSBC, J.P. Morgan, MUFG, SMBC, and Standard Chartered Bank as the issue’s managers.

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