The Banking and Finance Committee of Shriram Transport Finance Company (STFC) has approved issuance of Senior Secured Notes (Social Bonds) due 2024 aggregating $500 million at a coupon rate of 4.40 per cent.

This fund-raising is part of STFC’s $3-billion Global Medium Term Note Programme updated on December 24, 2020.

The issue price of the Senior Secured Notes, which mature on March 13, 2024, is ‘99.99 per cent of the Aggregate Nominal Amount’, the company said in a regulatory filing.

The issue date of the Notes, which will be listed on the Singapore Exchange Securities Trading Ltd, will be January 13, 2021.

STFC said the proceeds of the Social Bonds will be used in accordance with its Social Finance Framework and as may be permitted by the Reserve Bank of India’s (RBI) External Commercial Borrowing (ECB) guidelines.

As per the filing, the proceeds will be used for “onward lending and other activities as may be permitted by the RBI ECB Guidelines and in accordance with the approvals granted by the RBI from time to time.”