Shriram Transport Finance sells truck loan portfolio to DSP Merrill Lynch
13 September 2006
Chennai: The country's leading truck finance company Shriram Transport Finance Company Limited has agreed to sell its truck loan portfolio totalling $200 million to DSP Merrill Lynch Capital Ltd this fiscal. The first tranche of $100 million has already been disbursed on 7 September 2006, and the balance will be sold during the third quarter of this fiscal.
The deal is a non-recourse one, that is, the loan though originated and distributed by Shriram Transport, the risks of default by the borrowers falls on DSP Merrill Lynch.
Announcing the deal Shriram group chairman R Thyagarajan said, "The funds made available through this deal will be lent to truck owners."