Muthoot Finance to Raise Rs 250 Crore through NCD

Muthoot Finance Ltd, the largest gold financing company in India, has proposed public issue of 25,00,000 Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1000/- each.

Through this NCD issue the company plans to raise an amount up to Rs. 250 crore, with an Green Shoe option to retain 100% over-subscription and thus raising the total size of the issue to Rs. 500 crore. The issue opened on September 07, 2015 and will close on October 07, 2015, with an option of early closure date depending upon the level of subscription.

The NCD under this issue have been rated ‘AA-/Stable’ by ICRA indicating high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

The funds raised through this issue will be used for our various financing activities including lending and investments, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements.

This is 13^th NCD offer from Muthoot Finance with investment tenors ranging from 400 days to 60 months and is offering coupon rate ranging from 8.75% to 9.50% depending on tenure and the category.

Category 2 and 3 i.e. Corporates and Retail Individuals are offered additional incentive of 0.75% across the tenure. Unsecured NCDs have tenure of 84 months with a coupon rate ranging from 9.66% to 10.41%.

Post allotment, NCDs will be listed on BSE.

Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs. 1000) thereon, thereafter

ICICI Securities Ltd and Edelweiss Financial Services Ltd are the Lead Managers to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee to the Issue, while Link Intime India Pvt Ltd is the registrar to the Issue.

About Muthoot Finance Limited:

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala.

Operating history of Muthoot Finance has evolved over a period of 76 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.

The company provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

Company is listed on both National Stock Exchange and Bombay Stock Exchange.