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    Muthoot Finance raises $400 million through external commercial borrowing

    Mars Posted on

    Muthoot Finance Ltd announced that it has raised $400 million (approximately ₹3,350 crore) through the issuance of senior secured notes (notes) under its $2 billion global medium-term note program, in accordance with the External Commercial Borrowing (ECB) guidelines of the Reserve Bank of India.

    The coupon of the notes has been fixed at 6.375 percent per annum and is issued with a door-to-door maturity of 4.5 years and an average period of 4 years.

    The order book peaked at over $1.3 billion with a 3.9x oversubscription and final participation from over 125 investors across the globe. The bonds have been rated by international credit rating agencies S&P and Fitch with BB/Stable.rating. The issuance complied with Rule 144A of the US Securities Act of 1933.

    The funds collected will be used for further lending and other activities permitted under the External Commercial Borrowing Guidelines of the Reserve Bank of India.

    The notes are listed in NSE IX, Gift City, Gujarat.

    Deutsche Bank and Standard Chartered Bank were the arrangers and dealers for the issue.

    Muthoot Finance had previously raised $450 million in 2019 and $550 million in 2020, which were repaid on the respective maturity dates in 2022 and 2023 respectively. In the current financial year, the company has already raised $750 million through the same for a period of 3.75 years with a coupon of 7.125 percent.

    George Alexander Muthoot, Managing Director of Muthoot Finance Ltd, said this $400 million fundraising, under the $2 billion Global Medium Term Note program, will further strengthen our partnership with global investors. The issuance will help the company achieve higher loan disbursements, further diversify the sources of its borrowings and expand the investor base.

    Mars
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