Muthoot Finance To Raise Rs 1000 Crore Through NCD
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “The issue will help the company to have long term funds and diversify borrowing basket as well."
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Muthoot Finance has announced its 21st series of Public Issue of Secured Redeemable Non-convertible Debentures. The issue is with a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 900 crores aggregating up to tranche limit of Rs 1000 crores (“Tranche III issue”). The issue opens on September 27, 2019, and closes on October 25, 2019, with an option to close on such earlier date or an extended date as may be decided by the Board of directors or NCD committee.
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “The issue will help the company to have long term funds and diversify borrowing basket as well. The previous NCD issues were well received in the market and were over-subscribed.
He further added, “It provides an opportunity to Retail and High Networth Individual investors, to whom we have allocated 80 per cent of the total issue size, with stable and attractive long term returns when there are only limited comparable alternative avenues for investments.”
The issue is rated by two Credit Rating Agencies – CRISIL and ICRA. Both agencies have awarded long term debt rating of ‘AA/Stable’ for the debentures offered under the issue. The rating scale denotes ‘High degree of safety regarding timely servicing of financial obligations and very low credit risk’.
The NCDs are proposed to be listed on BSE. The allotment is based on first come first serve basis.
There are ten investment options for Secured NCDs with monthly or annual interest payment frequency or ‘on maturity redemption’ payments with effective yield per annum ranging from 9.25 per cent to 10 per cent.
The funds raised through this issue will be utilised primarily for lending activities of the company.
The Lead Managers to the issue are Edelweiss Financial Services and A. K. Capital Services. IDBI Trusteeship Services is the Debenture Trustee for the issue. Link Intime India Private is the Registrar to the Issue.