Shriram Finance Raises $500 Million Through USD Social Bonds

Shriram Finance has successfully raised $500 million from global investors through the issuance of fixed-rate, senior-secured social USD bonds. The bonds, issued at a coupon rate of 6.15%, mark the Chennai-based non-banking finance company’s (NBFC) first USD bond issuance for FY25 and the ninth overall.

The USD social bonds, rated ‘BB’ will be used primarily for lending to sustainable income-generating segments such as vehicle finance. Additionally, the proceeds will support employment generation through financing for micro, small, and medium enterprises (MSMEs). This aligns with Shriram Finance’s social finance framework, which promotes financial inclusion by providing affordable financing to first-time buyers and small road transport operators.

Umesh Revankar, Executive Vice Chairman of Shriram Finance, highlighted the significance of the issuance, stating, “This opportunistic issuance, executed under favorable market conditions, received an overwhelming response from global investors. It reflects strong investor confidence in our financials and strategic vision.”

Looking ahead, Shriram Finance is keen to explore the overseas bond market again as interest rates ease. Although comfortable with bank funding, the company aims to diversify its borrowing sources through both international and domestic capital markets.
A consortium of banks, including Barclays, BNP Paribas, Citigroup, DBS Bank, Deutsche Bank, and HSBC, managed the issuance.

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This successful bond issuance follows Shriram Finance’s previous $750 million social bond raised in January 2024, demonstrating the company’s ongoing commitment to sustainable and inclusive growth.