Muthoot Finance announces ₹100-cr non-convertible debenture issue

Our Bureau Updated - May 14, 2019 at 10:15 PM.

Muthoot Finance has announced its 20th series of public issue of secured redeemable non-convertible debentures.

The base size of the issue is ₹100 crore. The issue has an option to retain oversubscription up to ₹900 crore, aggregating up to a tranche limit of ₹1,000 crore (“Tranche II issue”).

The issue closes on June 10 with an option to close on such earlier date or extended date as may be decided by the Board of directors or NCD committee.

The issue is rated by Crisil and ICRA. Both agencies have awarded long-term debt rating of ‘AA/Stable’ for the debentures offered under the issue.

The NCDs are proposed to be listed on the BSE.

There are 10 investment options for the secured NCDs with monthly or annual interest payment frequencies or on maturity, redemption payments with effective yield of 9.25-10 per cent a year.

George Alexander Muthoot, Managing Director, Muthoot Finance, said, “The issue will help the company to have long-term funds and diversify the borrowing basket as well. It provides an opportunity to retail and high networth investors, to whom we have allocated 80 per cent of the total issue size, an opportunity to have stable and attractive long-term returns when there only limited comparable alternative avenues for investments.”

The funds raised through the issue will be utilised primarily for lending activities of the company.

The lead managers to the issue are Edelweiss Financial Services and AK Capital Services. IDBI Trusteeship Services is the Debenture Trustee. Link Intime India is the registrar to the issue.

Published on May 14, 2019 16:45