Muthoot Fincorp unveils Rs 600 crore retail bond issue

Gold loan company Muthoot FinCorp is looking to raise up to Rs 600 crore by selling bonds to retail investors to support business growth.

The bonds will yield between 8.7% and 9% across multiple tenure of 24-, 36-, 60- and 72-months.

The flagship company of Kerala's Muthoot Pappachan group opened the issue for subscription Friday and it will remain open till March 23. The base issue size is Rs 200 crore while there is a greenshoe option of up to Rs 400 crore, the company said.


"This offering is intended to support onward lending and financing activities, repay/prepay interest and principal on existing debt, and meet general corporate needs," the company.

The bonds are rated AA-/positive by Crisil Ratings and AA/stable by Brickwork Ratings India, indicating high degree of safety for timely servicing of financial obligations.

Muthoot FinCorp, which is not publicly listed, had standalone assets under management of Rs 48122 crore at the end of December last year.