Gold lender Muthoot Finance has raised ₹3,350 crore through the issuance of senior secured notes under its $2 billion global medium-term note programme.

The notes, which carry a nominal rate of 6.375% per annum, will mature in 4.5 years, with an average maturity of 4 years. The offering attracted considerable interest, with an order book exceeding $1.3 billion and an oversubscription rate of 3.9 times, attracting participation from more than 125 global investors. The bonds received a BB/Stable rating from S&P and Fitch.

Proceeds from this issuance will be used for subsequent lending and other activities permitted by ECB regulations, the lender said in its exchange filing. The notes are listed on the NSE IX in Gift City, Gujarat.

Deutsche Bank and Standard Chartered Bank acted as arrangers and brokers for this issue. Muthoot Finance had previously raised $450 million in 2019 and $550 million in 2020, both of which were repaid on time.

George Alexander Muthoot, Managing Director of Muthoot Finance, commented: “This fundraising will further strengthen our partnership with global investors. We received a strong response due to our resilient performance and commitment to our customers. The lower coupon rate compared to previous issuances allows us to obtain higher loan disbursements and diversify our financing sources.

Muthoot Finance operates over 4,800 branches across 30 Indian states and serves over 250,000 retail customers daily for gold loans and other products. The company reported loan assets of ₹75,827 crore as on March 31, 2024, with profit after tax of ₹4,050 crore for FY2024.

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