Shriram Transport Finance to issue masala bonds worth Rs 475 crore

Shriram Transport Finance on Thursday said that that its board has approved fund raising in rupee-denominated bonds also called masala bonds with an issue size of Rs 475 crore.

Rupee-denominated bonds are called as masala bonds which are listed at stock markets outside India, like London Stock Exchange, but are denominated in Indian Rupees.

Proceeds of the bonds will be utilised in accordance with guidelines issued by the Reserve Bank of India, the company said.

Coupon rate has been fixed at 8.25% per annum at a tenure period for 3 years and 1 months.

This would be the third NBFC  to enter the masala bonds market. Till now only HDFC and Indiabulls Housing Finance have raised Rs 5000 crore and Rs 500 crore, respectively. 

Shares of Shriram Transport Finance closed at Rs 942.50 per share on BSE, down by Rs 24.25 or 2.51%.