By Sarah Lizee
Olympia, Wash., Jan. 10 – Shriram Transport Finance Co. Ltd. priced $500 million of 5.1% 3.5-year senior secured social bonds at par, according to a press release.
The company engaged investors in Hong Kong, Singapore, London and the United States through a series of calls.
On the back of strong investor feedback, the transaction was launched with an initial price guidance of 5 3/8% area, and pricing was later tightened by 27.5 basis points to 5.1%.
The company said the bonds got overwhelming response from investors with the final order book in excess of $2.2 billion and oversubscription of more than 4x.
Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Emirates NBD Capital, HSBC, ING, J.P. Morgan and Standard Chartered Bank acted as joint bookrunners and joint lead managers.
Proceeds from the Rule 144A/Regulation S bonds will be used to finance or refinance eligible social projects as per the social finance framework of the company, according to a term sheet. Shriram Transport said in the release that it planned to use proceeds specifically for employment generation.
The Mumbai-based company provides financing for commercial vehicles.
| Issuer: | Shriram Transport Finance Co. Ltd.
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| Issue: | Social bonds
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| Amount: | $500 million
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| Maturity: | July 16, 2023
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| Bookrunners: | Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Emirates NBD Capital, HSBC, ING, J.P. Morgan and Standard Chartered Bank
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| Coupon: | 5.1%
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| Price: | Par
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| Yield: | 5.1%
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| Settlement date: | Jan. 16
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| Distribution: | Rule 144A/Regulation S
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