Muthoot Finance, a goal loan non-banking financial company, has raised $600 million from international bond market through an external commercial borrowing (ECB) issuance, per a company announcement.
The funds will be deployed for lending activities enabling Muthoot Finance to provide additional credit to customers across India, the company said in a statement.
The fundraise, under $2-billion global medium-term note (GMTN) Programme, has been priced at 6.375% with a door-to-door tenor of 4.5 years and a weighted average life of four years, the statement said.
The issuance attracted strong global participation, with 36% of the funds coming from investors in Asia, 15% from EMEA, and 49% from the US. By investor type, 91% of the subscription came from fund and asset managers, 4% from private banks and banks, 4% from insurance companies, and the remaining 1% from other investors, it added.
“The successful ECB highlights our robust growth strategy, governance practices and marks another step in our expansion journey. This issuance is part of our ongoing efforts to diversify funding sources and further strengthen our international fund raising profile. With the continued support of our partners and investors, we remain well-positioned to scale our lending activities in the gold loan sector, expand our presence across India, and contribute meaningfully to the country’s growth story,” said George Alexander Muthoot, Managing Director, Muthoot Finance.
The issuance was managed by Deutsche Bank and Standard Chartered as joint global coordinators and bookrunners.
