Muthoot Finance to raise Rs 1000 crore through issue of debentures – ET BFSI


NBFC Muthoot Finance has outlined plans to raise upto Rs 1000 crore through the issue of Secured Redeemable Non-Convertible Debentures. The gold loan major said the issue would have a base issue size of Rs 100 crore, with a further option to retain an oversubscription of Rs 900 crore.“The Issue opens on December 11, 2020 and closes on January 5, 2021 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee,” said Muthoot Finance in a statement, further adding that the debentures, to be listed on the BSE, would be through allotted through a first come first serve basis.

Managing Director of the NBFC, George Alexander Muthoot, on the issue said “In our 24th public issue of NCDs, we wish to focus on retail and high networth individual investors and we have allocated 90% of the issue for this segment.”

“At a time when interest rates have significantly come down, we are able to offer attractive interest rates to retail and high networth individual investors. We look forward for the market to accept the current issue too in line with our previous NCD issues as there is limited comparable investment avenues available,” added Muthoot.The NCDs to be issued by Muthoot Finance have been rated CRISIL AA/Positive by CRISIL and [ICRA] AA (Stable) by ICRA. The NBFC said, “The rating of the Secured NCDs by CRISIL and ICRA indicates “high degree of safety regarding timely servicing of financial obligations.”

Source link

Leave a Reply