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Shriram City Union Finance Limited Public Issue of Secured Redeemable

Chennai, April , 2019: Shriram City Union Finance Limited, a deposit-taking NBFC under Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India is coming out with a public issue of secured redeemable non-convertible debentures of face value of Rs. 1000 each (“NCDs”). The Tranche 1 Issue aggregates to Rs. 1,000 million, with an option to retain over-subscription up to Rs. 6,500 million, aggregating up to a total of Rs. 7,500 million.  The Tranche 1 Issue opens on April 05, 2019 and closes on May 3, 2019, with an option of early closure or extension.

The NCDs proposed to be issued under the Issue have been rated ‘CARE AA+ Stable’ (Double A Plus; Outlook: Stable) by CARE and ‘CRISIL AA/Stable’ (pronounced as CRISIL double A rating with Stable outlook) by CRISIL for an amount of upto ` 30,000 million vide their letters dated December 11, 2018 (and revalidated on February 14, 2019 and further revalidated on March 20, 2019) and December 6, 2018 (and revalidated on February 19, 2019 and further revalidated on March 19, 2019) respectively. The rating of the NCDs by CARE and CRISIL are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by CARE and CRISIL may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating.

These NCDs, bearing a fixed rate of interest, are being offered under eight different series.

The terms of each series of NCDs, offered under Tranche 1 Issue are set out below:

ParticularsSeries
IIIIIIIVVVIVIIVIII
Frequency of Interest PaymentAnnualCumulativeAnnualMonthlyCumulativeAnnualMonthlyCumulative
Minimum Application Rs.10,000 (10 NCDs) across all series collectively
Face Value/ Issue Price of NCDsRs. 1,000 per NCD
In multiples of thereafterRs. 1,000 (1 NCD) across all series
Tenor24 months24 months36 months36 months36 months60 months60 months60 months
Coupon (% per annum)9.55NA9.659.26NA9.759.35NA
Effective Yield (% per annum)9.559.559.649.659.659.749.759.75
Mode of Interest PaymentThrough various modes available
Amount on Maturity (`)1,0001,200.151,0001,0001318.7010001,0001593.15

With respect to series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual series will be made at the time of redemption of the NCDs.

The funds raised through this Tranche 1 Issue will be utilised for company’s various financing, lending, investments, repaying its existing liabilities or loans, towards its business operations, capital expenditure, working capital requirements and general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.

The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE. BSE is the Designated Stock Exchange for the Tranche 1 Issue.

The Lead Managers to the Issue are A. K. Capital Services Limited and Edelweiss Financial Services Limited.

Catalyst Trusteeship Ltd. (formerly known as GDA Trusteeship Limited) is the Debenture Trustee and Integrated Registry Management Services Private Limited is the Registrar to the issue.

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