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Shriram Finance seeks record $1.25 billion offshore loan split across currencies


Published on 2024-12-18 02:40:57 - moneycontrol.com
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  • The loan adds to this year's rush of offshore debt sales by Indian shadow lenders after the nation's central bank tightened rules in November 2023 that made it increasingly difficult for the sector to obtain local currency bank loans.

Shriram Finance, an Indian non-bank lender, is seeking to raise a record $1.25 billion through an offshore loan, marking the largest such deal by an Indian non-bank financial company. The loan will be split into three tranches: $500 million for five years, $500 million for three years, and $250 million for two years, with the possibility of extending the shorter terms by an additional year. The funds are intended for general corporate purposes, including refinancing existing debt. The loan will be denominated in multiple currencies including US dollars, euros, and Japanese yen, with initial pricing discussions set at around 200 basis points over the Secured Overnight Financing Rate (SOFR) for the dollar portion. This move comes as Shriram Finance aims to diversify its funding sources and manage its liabilities more effectively.

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