Shriram Finance Cuts Borrowing Costs Using Ratings-Linked Repricing Clause
· Business · Economic Times
Shriram Finance achieved a reduction of 60 to 80 basis points on a $1.3-billion syndicated loan by utilizing a rate reset clause tied to its credit rating. The Mumbai-based non-bank lender secured these savings following a recent ratings upgrade. Managing director and CEO Parag Sharma stated that the company plans to raise an additional $300 million to $500 million in overseas loans between January and March. Sharma expects such repricing clauses to become standard in future fundraising deals as credit profiles increasingly influence borrowing costs.
Why it matters
This development signals a shift in how Indian financiers manage debt, as companies increasingly leverage improved credit ratings to lower their interest expenses in international markets.
Read the original report — Economic Times
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