Shriram Finance raises USD 500mn through Social Bonds from International Bond Markets

Shriram Finance Limited (“SFL” or “Company”) One of the India’s largest retail financing
Non-Banking Finance Companies has successfully priced a USD 500 million Fixed Rate Senior
Secured Rule 144A / Reg S Bond for a 3.5 year tenor at an interest rate of 6.15%. This deal marks
the largest deal size by the Company. This is the Company’s 9th successful USD public bond
issuance since the relaxation in the ECB guidelines.

Following a strong book build supported by high quality long only marquee investors, the
Company was able to achieve tightening in the pricing by 35 bps. This also marks the tight credit
spreads over 3 year US Treasuries in our USD bonds.

The bond got an overwhelming response from over 125 investors with the order book in the range
of 2.4x of the issue size. The transaction witnessed 47% participation from APAC, 27% from EMEA and 26% from US with 83% investment from asset managers/fund managers, 11% from private banks and 6% from
banks.

SFL’s Social Bond issuance is guided by SFL’s Social Finance Framework which is aligned to the
ICMA Social Bond Principles. The proceeds from the Social Bonds would be used for employment
generation especially through MSME financing. SFL has obtained a second party opinion from
S&P and CareEdge on its Social Finance Framework mapping to UNs Sustainable Development
Goals – 1. No poverty, 8. Decent work and economic growth, 9. Industry, innovation and
infrastructure, 10. Reduced inequalities.

SFL’s financial instruments and services provided are:
– Financing to small road transport operators (SRTOs) and first-time borrowers (FTBs) at
favorable interest rates, where SRTOs and FTBs are from underserved communities across
India;
– Suitable financial instruments and services for micro, small and medium enterprises
(MSMEs), whose current asset base does not allow access to mainstream bank credits or
without proof of income to qualify for traditional loans; and
– Affordable financing instruments (i.e., personal loans, gold loans) to individuals (i.e.,
unbanked and/or underserved individuals, including women as a target population).

Mr. Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, while
describing the successful issuance stated “We are delighted to announce the successful placement
of our USD 500mn Social Bond, reinforcing our commitment to advancing initiatives through our
Social Finance Framework. This opportunistic issuance, executed under favorable market
conditions, received an overwhelming response from global investors. As our 9th successful public
USD bond issuance, following the USD 750 million transaction in January 2024, this reflects
strong investor confidence in our financials, strategic vision, and dedication to fostering
sustainable and inclusive growth.”