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Dia Deshpande made post

Why is Shriram Transport Finance raising money from abroad rather than from the Indian markets?

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Ria Jain answered.
8 months ago

Shriram Transport Finance will be raising a total of $500 million (Rs.3550 crore) from the overseas market via sale of bonds. The idea is to capitalize on the rising credit demand in India. Shriram Transport predominantly funds second hand trucks in India. IT will be selling 5-year bonds in the global market for the first time because earlier the maximum tenure of bonds that it had sold was for 3 years only.

Shriram Transport Finance is expecting a sharp pick up in credit growth in the Jan-Mar quarter and wants to be adequately funded before that. The company also recently got an upgrade from Fitch and S&P and that is being utilized to raise funds at competitive rates in the global market. The company was one of the few players in the NBFC space which largely managed to come out of the crisis unscathed due to its relatively sound asset quality and limited asset / liability mismatch risk.