New Delhi: Asset financing firm Shriram Transport Finance Co. Ltd on Tuesday said it will raise $500 million (approx 3,475.50 crore) through issuance of secured notes.

Shriram Transport Finance plans to use the proceeds from the fundraising for onward lending and other activities as may be permitted by the external commercial borrowings (ECB) directions.

"The bond issuance committee has approved issuance of $500,000,000 (approx 3,475.50 crore) senior secured notes under the $2,000,000,000 global medium term note programme...The company is signing the pricing supplement in this regard," Shriram Transport Finance said in a BSE filing.

Shriram Transport Finance said these notes, having tenure of 3.5 years and carrying an interest rate of 5.95% per annum, are payable semi-annually. They will be listed on the Singapore Exchange Securities Trading Ltd.