One basis point is 0.01%.
The notes are secured by a fixed charge over specified receivables, in line with the company’s domestic secured bonds and its senior secured debt issued overseas in US dollars and rupees.
Under the Reserve Bank of India’s (RBI) external commercial borrowings (ECB) framework, the notes are issued on a floating interest-rate basis of 2.25% above the compounded daily SOFR. The notes will be listed on the India International Exchange. Fitch Ratings has assigned a rating of ‘BB’ to the notes.
Shriram Finance largely borrows through term loans, non-convertible debentures and public deposits. ECB loans form less than 5% of the overall borrowing.
An MUFG Bank spokesperson did not respond to a request for comment.
“This funding will help the company’s liquidity position and support its growth plans,” said Umesh Revankar, executive vice chairman, Shriram Finance. “We will continue to borrow overseas if the all-in cost of borrowing is in line with the local borrowing cost.”Shriram Finance, a non-banking financial company (NBFC) providing loans for commercial vehicles, construction equipment and SMEs, reported a consolidated net profit of ₹4,726 crore on AUM of ₹1.84 lakh crore in the nine-month period ending December. It had capital adequacy of 22.99% as of December 31, 2022.
