Gold loan company Muthoot Finance on Wednesday said it has raised $400 million through the issuance of Senior Secured Notes under its Global Medium Term Note Program of $2 billion in compliance with External Commercial Borrowings (ECB) guidelines of the Reserve Bank of India. The coupon for the notes was set at 6.375 per cent p.a. and issued with a door-to-door maturity of 4.5 years and an average period of 4 years.
The company said its order book peaked at over $1.3 billion with an oversubscription of 3.9x and final participation from more than 125 investors globally. It noted that the new funds will be deployed towards onward lending and other activities permitted under External Commercial Borrowing guidelines of the central bank.
The Notes are listed in NSE IX, Gift City, Gujarat.
Muthoot Finance had earlier raised $450 million in 2019 and $550 million in 2020. The company repaid them on respective due dates in 2022 and 2023. It has already raised $750 million in the current financial year under the same route for 3.75 years at a coupon of 7.125 per cent.
Speaking on the investment raised, George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said the company saw a great response from global investors on the back of its resilient performance, commitment to customers, and a successful track record of gold loan business in India.
“This also helped us in reducing the coupon rate on the Notes to 6.375% vis-à-vis the earlier issuance at a coupon rate of 7.125% even though the period has increased to 4.5 years compared to 3.75 years for the previous issue. 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,” he said.
According to the company, it serves around 2.5 lakh retail customers every day for gold loans and other loan Products and has about 1 lakh retail investor base for its non-convertible debentures. Its loan assets stood at Rs 75,827 crore as of March 31, 2024 and had profit after tax of Rs 4,050 crore for FY 2024.