Merrill Lynch eying truck portfolio of Shriram Transport
Chennai, Sep 11 (UNI) Merrill Lynch, one of the world's leading wealth management, capital markets and advisory companies, has offered to buy truck portfolio from Shriram Transport Finance Company Ltd, a leading player in the NBFC segment, amounting to USD 200 million during the current financial year.
The deal was made through Merrill Lynch's NBFC arm in India 'DSP Merrill Lynch Capital Ltd'.
Announcing this at a press conference here today, Shriram Group Chairman R Thyagarajan said the first tranche of USD 100 million had already been disbursed on September seven, 2006.
The remaining tranche of USD 100 million would be disbursed during the third quarter, he added.
He said the funds channelised through Merrill Lynch would help small truck owners to get easier access to funds, thereby helping modernisation of the trucking fleet of the country.
DSP Merrill Lynch Capital, Head-Global Structured Finance and Investments, Rajiv Garg said the deal would facilitate Shriram in empowering small truck owners who constituted more than 75 per cent of the truck population.
Stating that Merrill Lynch had made a small beginning in India, he said the company was planning to create its own financing platform in the country in various sectors such as real estate and transport. Shriram Transport Finance Company Ltd Chairman Arun Duggal said the company was the largest among the assets-based NBFC in India.
He said the company's assets had tripled from Rs 2,500 crore in March 2002 to Rs 7,500 in March 2006. It had been planned to double the assets to a minimum of Rs 15,000 crore in the next four years, he added.
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