Indian non-bank lenders to sell short-term bonds

Credit: REUTERS/FRANCIS MASCARENHAS

Indian non-banking financial companies Tata Motors Finance, Shriram Transport Finance and Spandana Sphoorty Financial are planning to raise a total of Rs7.5bn (US$101m) from bonds.

MUMBAI, October 27 (IFR) - Indian non-banking financial companies Tata Motors Finance, Shriram Transport Finance and Spandana Sphoorty Financial are planning to raise a total of Rs7.5bn (US$101m) from bonds.

Tata Motors Finance is looking to sell up to Rs4bn two-tranche bonds. It is eyeing Rs1bn, including a Rs500m greenshoe, from an 18-month tranche at 6.75% and Rs3bn, including a greenshoe of Rs3.5bn, from a two-year piece at 7%. Crisil has assigned a AA– rating to the notes.

Shriram Transport Finance is eyeing Rs1.5bn from 10-year bonds at 9%.

Crisil and India Ratings have assigned a AA+ rating to the bonds.

Spandana Sphoorty Financial plans to issue up to Rs2bn 18-month bonds at 10%. Icra has assigned a A– rating to the notes.

The coupon step up by 25bp for every notch of rating downgrade.

The issuers have asked investors to place bids on the electronic platform on October 28.

The non-banking financial companies are yet to make an official announcement on the planned bond sales.

(Reporting by Krishna Merchant; Editing by Vincent Baby)

((krishna.merchant@refinitiv.com; +65 97865219))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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