Merrill Lynch to buy $200 mln truck portfolio from Shriram
New Delhi, Sep 11 (UNI) Shriram Transport Finance Co Ltd, India's leading truck financing company, today announced that Merrill Lynch, through its NBFC arm in India, DSP Merrill Lynch Capital Ltd, has offered to buy its truck portfolio for 200 million dollars during 2006-07.
The first tranche of 100 million dollars has already been disbursed on September 7, 2006, and the next tranche of 100 million dollars will be disbursed during the third quarter of the financial year 2006-07.
''We are excited about the possibilities this partnership opens for Shriram. The funds channelised through Merrill Lynch will help the small truck owners to get easier access to funds, thereby helping the modernisation of the trucking fleet of the country,'' Shriram Group Chairman R Thyagarajan said.
The strategic relationship with Merrill Lynch is touted to enable the company to enhance its market share significantly in the truck financing business.
This deal will facilitate Shriram in empowering small truck owners who constitute more than 75 per cent of the truck population.
The company is witnessing rapid growth and our involvement will help them finance part of this growth, DSP Merrill Lynch Capital Global Structured Finance&Investments Head Rajiv Garg said.
DSP Merrill Lynch Capital, a 100 per cent subsidiary of DSP Merrill Lynch Ltd, is a Non-Banking Finance Company registered with the Reserve Bank of India.
Merrill Lynch, one of the world's leading wealth management, capital markets and advisory companies, has offices in 36 countries and territories and total client assets of approximately 1.8 trillion dollars.
As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide.
Shriram Transport Finance Company Ltd is a leading asset-based NBFC in the country enjoying leadership position in the Commercial Vehicle Financing business.
The company has more than Rs 7,500 crore assets under its management with a network of over 300 branches spread over the entire length and breadth of the country.
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