NEW DELHI, Jan 3: Shriram Transport Finance’s upsizing of multi-currency global medium-term notes programme will further diversify its funding profile, S&P Global Ratings said.
Shriram Transport Finance Co (STFC) has upsized the programme to USD 3 billion from USD 2 billion, the rating agency said in a statement.
It believes that STFC will continue to tap international bond markets.
SFTC has diversified its sources through overseas and domestic retail bond issuances in the past year.
Overseas debt increased to 12 per cent of the total borrowings as of September 30, 2019, from three per cent a year ago.
STFC has also relied on securitisation during this time, which increased to 25 per cent of borrowings from 19 per cent, the agency said.
“In our view, domestic funding and liquidity conditions remain tight given the cycle of easy liquidity and low cost of funds has reversed for Indian finance companies in the past year,” it added. (PTI)
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