Shriram Finance plans to raise $250 million via ECB in Q4, says CEO YS Chakravarti

Shriram Finance plans to raise $250 million via ECB in Q4, says CEO YS Chakravarti

Non-banking finance company Shriram Finance is planning to raise $250 million through external commercial borrowing (ECB) in the fourth quarter of the current financial years, managing director and chief executive YS Chakravarti told Moneycontrol exclusively.

"We are planning the ECB of $250 million in Q4FY25," Chakravarti told Moneycontrol exclusively on the sidelines of Trust Group's India Debt Capital Market Summit 2024.

ECB borrowing is a fundraising by Indian entities in the overseas market from foreign investors in foreign currency or Indian rupee.

On September 25, the company has also raised $500 million through senior secured notes maturing in 2028 at an interest rate of 6.5 percent.

Following a strong book build supported by high quality long only marquee investors, the company was able to achieve tightening in the pricing by 35 bps. "This also marks the tight credit spreads over 3-year US Treasuries in our USD bonds," he said.

ECB loans constitute 7.85 percent of the overall borrowing profile of the company. In September, 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 witnessed 47% participation from APAC, 27% from EMEA and 26% from US with 83% investment from asset managers/fund managers, 11% from private banks and 6% from banks.

Further, Chakravarti said that considering the healthy growth in the two wheelers and commercial vehicles loans, the loan book is expected to grow more than the previous quarter.

In July-September quarter, total assets under management of the company grew 19.94 percent on-year to Rs 2.43 lakh crore, presentation showed.