Muthoot Finance prices $650-m fixed rate notes at 7.125%

Muthoot Finance Ltd plans to raise $650 million via fixed rate notes (FRNs) due in 2027-28 at a coupon of 7.125 per cent.

The finance committee of the board of directors of the gold loan company, at its meeting on May 7, approved the pricing, tenure and other terms of the notes under the $2-billion Global Medium Term Note Programme, the company said in a regulatory filing.

The proceeds of the notes will be used for onward lending activities, as per the filing.

“Unless otherwise specified in the relevant pricing supplement, the net proceeds from each issue of notes will be applied by the issuer for the purpose of onward lending and other activities as may be permitted by the ECB (external commercial borrowing) guidelines, in accordance with the approvals granted by the RBI,” Muthoot Finance said.

The pricing date of the notes, which will be listed on NSE IFSC Limited, is May 7, 2024, and the closing and settlement is expected within five working days from the pricing date.

Muthoot Finance has subsidiaries such as Belstar Microfinance, Muthoot Homefin, and Muthoot Money. The company’s consolidated assets under management grew 27 per cent YoY to ₹82,773 crore as at nine months of FY24 as against ₹65,085 crore last year.

The gold loan company’s standalone AUM stood at ₹70,852 crore as at December-end 2023. Its subsidiaries’ combined AUM stood at ₹11,921 crore.