MUMBAI: Shriram Finance, the largest vehicle financing company, has successfully raised $500 million in social bonds from international investors.
The company said the Regulation S bonds sold denominated in dollars offer a fixed rate 6.15 percent annually for the life of the instrument tenured for 3.5 years.
The deal marks the largest raising of bonds by the company, it said in a statement Wednesday adding this was the ninth successful USD public bond issuance since the relaxation in the ECB guidelines.
The statement said they could tighten the coupon by 35 bps following a strong book build from long only marquee investors.
The bond got an overwhelming response from over 125 investors with the order book in the range of 2.4x of the issue size. The transaction saw 47% participation from Aapc, 27 percent from emerging markets and 26 percent from the US with 83 percent investment from asset managers/fund managers and 17 percent from banks.
The proceeds will be used for employment generation especially through MSME financing.
Umesh Revankar, the executive vice-chairman of Shriram Finance, said the successful pricing of the social bond reinforces their commitment to advancing initiatives through social finance framework. This is their ninth public USD bond issuance, following the $750 million transaction in January 2024, reflecting strong investor confidence.