Muthoot Finance prices $550-million bond issue at 4.400%

By: |
February 22, 2020 1:15 AM

NBFC Muthoot Finance on Friday said it has successfully priced a $550-million bond for a 3.5-year tenor at 4.400%. The largest gold loan company had successfully placed $450 million for a 3-year tenor at 6.125% in October 2019. The proceeds of the issue will be used for permitted purposes, including onward lending, in accordance with […]

muthoot finance, bond. The bonds will be listed on International Securities Market of the London Stock Exchange.

NBFC Muthoot Finance on Friday said it has successfully priced a $550-million bond for a 3.5-year tenor at 4.400%. The largest gold loan company had successfully placed $450 million for a 3-year tenor at 6.125% in October 2019.

The proceeds of the issue will be used for permitted purposes, including onward lending, in accordance with RBI’s ECB guidelines and other applicable laws, the company said in a communication.

MG George Muthoot, chairman of Muthoot Finance, said: “The response from international bond investors in our second issue is quite overwhelming. We are glad to know that global investors have understood our unique credit story, acknowledging our long track record in gold loan business. This fund raise will enable us in further diversifying and strengthening our sources of funding.”

The transaction was officially launched on February 18, 2020, following which the company engaged several investors during a series of fixed income investor calls in Hong Kong, Singapore, London and US. On the back of high quality feedback, the transaction was launched with an initial pricing guidance of 4.750% area on February 20. Following a strong order book momentum, supported by high quality real money investors, the company was able to tighten pricing by 35bps to 4.400%.

The final order book was in excess of $1.6 billion with over subscription of more than 2.9x. The bonds will be listed on International Securities Market of the London Stock Exchange.

The company has issuer rating of Long Term rating of ‘BB+’ with ‘stable’ outlook by Fitch Ratings, ‘BB’ with ‘stable’ outlook by S&P Global Ratings and ‘Ba2’ Corporate Family Rating with ‘stable’ outlook by Moody’s Investor Service.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1After disastrous 2020, is aviation industry finally getting its wings in 2021?
2Air India pilots plea against reduction in allowances: HC seeks response of Centre, DGCA and airline
3HDFC Bank penalises its executive for inadvertently selling shares