Shriram Finance Raises $750 Mn Through Social Bond
Shriram Finance, on Wednesday, said that it has raised USD 750 million through Fixed Rate Senior Secured 144A / Reg S Bond for a 3.25-year tenor.
As per the company, this deal marks the largest deal size by the company.
Umesh Revankar, Executive Vice Chairman of Shriram Finance, while describing the successful issuance stated “Social Impact continues to remain a focus area for the company and we are pleased to have received significant interest for our Social Bond. Social impact is similar to our priority sector with some strict exclusion and has big interest from the international investor community.”
The bond received a response from over 200 investors with the order book in the range of 4-time of the issue size.
The transaction witnessed 32 per cent participation from APAC, 32 per cent from EMEA and 36 per cent from US with 81 per cent investment from asset managers/fund managers, 10 per cent from Sovereign Supranational and Agency / Insurance and 3 per cent from private banks and others.
SFL’s Social Bond issuance is guided by SFL’s Social Finance Framework which is aligned to the ICMA Social Bond Principles. The proceeds from the bond would be used for employment generation especially through MSME financing. SFL has obtained a second party opinion from S&P on our Social Finance Framework mapping to UNs Sustainable Development Goals .
