Muthoot Finance closes $600 million dollar bond issue, bankers say

Muthoot Finance, India's largest ‍gold finance company, has accepted bids worth $600 million for dollar-denominated ⁠bonds maturing in four years and six months, two merchant bankers said on Friday.

It will offer a yield of 5.75% ‌to ‌investors, below the initial price guidance of 6.1250%.

Financial research firm CreditSights sees ‌the fair value of the issuance at 5.75% and rates it 'market perform', citing the company's strong fundamentals.


In August 2025, Muthoot Finance raised $600 million through a similar bond issue, and another $150 million via a reissue in October.

"We expect a similar fact pattern for ‌the ‍current bond, as $750 million may be ‍too large for the issuer to deploy ‌in a quarter, and so a benchmark new issue should be expected followed by a tap the following quarter," CreditSights said in a note.

Proceeds from the issue will be used for onward lending and other activities, according to traders who ‍requested anonymity as they are not authorised to speak to media.

The bonds are expected to ‍be ⁠rated 'Ba1' by Moody's Investors ⁠Service and 'BB+' by S&P, in line with the issuer's ratings, the bankers said.

Muthoot Finance did not reply to a Reuters email seeking comment.

This is the third dollar bond sale from India this year after EXIM Bank and an Indian unit of U.S.-listed ReNew Energy Global raised an aggregate of $1.6 billion.