November 24, 2024
Muthoot Finance raises ₹3,350 crore in senior secured notes
 #CashNews.co

Muthoot Finance raises ₹3,350 crore in senior secured notes #CashNews.co

Cash News

Gold lender Muthoot Finance has raised ₹3,350 crore through the issuance of Senior Secured Notes under its $2 billion Global Medium Term Note Program.

The notes, which carry a coupon rate of 6.375% per annum, will mature in 4.5 years, with an average duration of 4 years. The offering saw significant interest, with the order book exceeding $1.3 billion and an oversubscription rate of 3.9 times, drawing participation from over 125 global investors. The bonds have received a BB/Stable rating from S&P and Fitch.

Proceeds from this issuance will be allocated for onward lending and other permissible activities under 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 dealers for this issuance. Muthoot Finance 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 fund raise will further strengthen our partnership with global investors. We received a robust response due to our resilient performance and commitment to our customers. The lower coupon rate compared to previous issuances allows us to achieve higher loan disbursements and diversify our funding sources.”

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

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