Muthoot Fincorp’s NCD issue to offer up to 11.03%

Muthoot Fincorp launched fourth public issue of secured redeemable non-convertible debentures (NCDs) to raise Rs 250 crore, with an option to retain over subscription up to Rs 250 crore, aggregating to Rs 500 crore. The funds raised will primarily be used to augment the working capital and requisite lending.

The company has received board approval to raise NCDs in the aggregate amounts of upto Rs 900 crore. The first tranche of the issue, with the face value of Rs 1,000 each and minimum ticket size of Rs 10,000, (10 NCDs) opened Friday, 20th September and will close by Friday, 18th October.

There will be eight schemes, with tenure options of 400 days, 24 months and 36 months, offering customers returns with interest rates ranging from 9.38 per cent to 11.03 per cent. The issue has received a credit rating of “BWR A+” with stable outlook by Brickwork Rating India.


Commenting on the proposed NCD issue, Thomas John Muthoot, chairman of Muthoot Pappachan group and managing director of Muthoot Fincorp Limited, said, “ In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans. On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs. ”