Shriram Finance Limited has announced the approval of the issuance of ₹4,181.5 crore (equivalent to $500 million) 6.15% Senior Secured Notes, also referred to as Social Bonds, due in 2028. The bonds will be issued under the company’s ₹29,270.5 crore (equivalent to $3.5 billion) Global Medium Term Note Programme, as confirmed by the Banking & Finance Committee during its meeting on 24th September 2024.
The Social Bonds, priced at 99.999% of the aggregate nominal amount, will be issued on 30th September 2024 and listed on the Global Securities Market – India International Exchange (INX). The bonds will carry a fixed interest rate of 6.15% per annum, with payments to be made semi-annually on April 3 and October 3 each year, starting in 2025, and the bonds will mature on April 3, 2028.
The bonds are secured by a charge on a specified pool of receivables exclusively earmarked for this issuance, and the proceeds will be used in line with Shriram Finance’s Social Finance Framework and RBI ECB Guidelines, aimed at onward lending and other activities permitted by the Reserve Bank of India.
This marks a significant financial step for Shriram Finance, further reinforcing its commitment to responsible financing through the issuance of social bonds.
