Shriram Finance is planning a USD denominated 144A/Regulation S senior secured Social Bonds offering, subject to market conditions.

This Social Bonds (Notes) offering is part of the non-banking finance company’s $3.5-billion Global Medium Term Note (GMTN) Programme for issuance of debt securities in international markets by way of public/ private issue.

The notes are expected to be rated “BB” by both Fitch and S&P, according to the non-banking finance company’s regulatory filing.

Under Regulation-S, offers and sales of securities that happen outside the US are exempt from SEC registration requirements.

The company has appointed Barclays, Deutsche Bank, HSBC, J.P. Morgan, Standard Chartered Bank, BNP PARIBAS, Citigroup, DBS Bank Ltd, Emirates NBD Capital, MUFG and SMBC Nikko as Joint Global Coordinators and Joint Bookrunners.

The rating definition of Fitch says ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. However, business or financial flexibility supports the servicing of financial commitments.

According to S&P Global Rating, instruments rated BB’ are less vulnerable in the near-term, but face major ongoing uncertainties to adverse business, financial and economic conditions.

“The use of proceeds shall be in accordance with the Issuer’s Social Finance Framework as may be permitted by the ECB (external commercial borrowing) guidelines and for onward lending and other activities as may be permitted by the ECB Guidelines and in accordance with the approvals granted by the RBI from time to time,” the company said.

The Social Finance Framework has been reviewed by S&P, which has issued a Second Party Opinion, it added.