Shriram Transport Finance Company, a non-banking finance company, has issued non-convertible debentures (NCDs) at 9.5%. The issue, which opened on 27th June, will be open till 20th July 2018. The issue comes shortly on the heels of NCD issues by DHFL and JM Credit Solutions at 9.1% and 9.75% respectively.
About the Issue
The NCDs have been rated AA+/Stable by CRISIL and Ind AA+ by India Ratings and Research. They will mature five years from the date of allotment. The minimum investment amount is Rs 10,000.
Who can apply
The NCDs are open to Corporates and Resident Indians only and not NRIs. Senior citizens will be given an additional interest of 0.25%.
Rates for different categories of borrowers
Investors designated as Category I and II are Qualified Institutional Buyers (QIBs) and Corporates respectively. Those designated as category III and IV are High Net Worth Individuals and Retail Individual Investors respectively. Category I and II investors will be offered an interest rate (called coupon rate) of 9.3% and Category III and IV investors will be offered an interest rate (called coupon rate) of 9.4%. Interest will be paid annually. For a monthly payment, the interest rate falls to 8.93% for Category I and II and 9.03% for Category III and IV. The headline rate of 9.5% is higher, after assuming reinvestment of interest payments.
How to apply
You can apply for these NCDs on the website of Shriram Transport Finance, here.
Issuer: Shriram Transport Finance
Issue Period: 27th June to 20th July 2018
Interest Rate: 9-9.5%
The frequency of Payment: Monthly, Annually
Tenure: 5 years