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Muthoot Finance to Issue USD Senior Secured Bonds under $4Bn GMTN Programme
Muthoot Finance has initiated a mandate for a benchmark-sized USD-denominated senior secured bond offering under its existing $4 billion Global Medium Term Note (GMTN) programme. The proposed notes will have a 4.5-year tenor and are expected to be rated Ba1 by Moody's and BB+ by S&P. Proceeds from the issuance will be utilized for onward lending and other activities permitted under the RBI's External Commercial Borrowings (ECB) guidelines. This move allows the company to diversify its funding sources and tap into international liquidity to support its growth.
Key Highlights
Benchmark-sized USD senior secured bond offering under a $4 billion GMTN programme.
Bonds feature a 4.5-year door-to-door tenor and a 4-year weighted average life.
Expected credit ratings of Ba1 (Moody's) and BB+ (S&P/Fitch).
Funds to be used for onward lending and activities compliant with ECB guidelines.
Deutsche Bank and Standard Chartered Bank appointed as Joint Global Coordinators.
💼 Action for Investors
The successful issuance will provide Muthoot Finance with long-term capital to support its gold loan portfolio growth. Investors should view this as a positive step in diversifying the company's liability profile and reducing reliance on domestic bank funding.