Shriram Finance taps foreign banks for cheaper debt

Mumbai: Non-banking finance company Shriram Finance is raising $1.3 billion through half a dozen foreign banks to reduce its borrowing costs as it takes advantage of a rating upgrade after a sizeable stake purchase by the Japanese banking major, Mitsubishi UFJ Financial Group (MUFG).

DBS Bank, HSBC, Standard Chartered and MUFG are among the banks which have lined up to provide this loan. ET could not ascertain the names of all lenders. "The loan has been launched with half a dozen banks already lining up for the first underwriting.

This is the first time that Shriram is raising funds after it received the rating upgrade. More such refinancing deals could follow," said a person familiar with the details.