Money & Banking

Muthoot Fincorp raises ₹125 crore via covered bonds

Our Bureau New Delhi | Updated on March 11, 2020

Muthoot Fincorp Limited, part of the Muthoot Pappachan Group, has done a successful closure of covered bonds worth ₹125 crore.

CRISIL rating

With a CRISIL rating of AA+ (CE), the covered bonds have been issued for a tenure of 28 months at an interest rate of 9.5 per cent per annum payable monthly. Vivriti Capital is the arranger for the issue.

Thomas John Muthoot, Chairman, Muthoot Pappachan Group, and Managing Director, Muthoot Fincorp Limited, said: “We are focussing on diversifying our funding sources and reducing the dependence on the traditional credit routes. While covered bond market has a considerable size of around €2.6-trillion globally, it is still in a nascent stage in India with only a handful of issuances till date.

“This issue opens us to to a vast market that has appetite for high-rated bonds while reinforcing our resilience during the turbulent market conditions.”

Published on March 11, 2020

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