Muthoot Finance raises $400 million through External Commercial Borrowings

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Muthoot Finance Ltd has announced that it has raised $400 million (approximately ₹3350 crore) through issuance of Senior Secured Notes (Notes) under its Global Medium Term Note Program of $2 billion in compliance with External Commercial Borrowings (ECB) guidelines of Reserve Bank of India.

The coupon for the Notes has been set at 6.375 per cent p.a. and is issued with a door-to-door maturity of 4.5 years and average period of 4 years.

The order book peaked at over $1.3 billion with an over-subscription of 3.9x and final participation from 125+ investors across the globe. The bonds were rated by International Credit Rating agencies S&P and Fitch with BB/Stablerating. The issue was in compliance with Rule 144A under the US Securities Act of 1933.

The funds raised will be used for onward lending and other activities permitted under External Commercial Borrowing guidelines of 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 issuance.

Muthoot Finance had previously raised $450 million in 2019 and $550 million in 2020 which was repaid on respective due dates in 2022 and 2023 respectively. In the current financial year, the company had already raised $750 million under the same route for a period of 3.75 years at a coupon of 7.125 per cent.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, this fund raise of $400 million, as a part of the $2 billion Global Medium Term Note program, will further strengthen our partnership with global investors. The issue will help the company to achieve higher loan disbursements as well as further diversify the sources of its borrowing and widen the investor base.