Muthoot Finance Ltd plans to lift $650 million by way of fastened fee notes (FRNs) due in 2027-28 at a coupon of seven.125 per cent.
The finance committee of the board of administrators of the gold mortgage firm, at its assembly on Might 7, accepted the pricing, tenure and different phrases of the notes beneath the $2-billion World Medium Time period Word Programme, the corporate stated in a regulatory submitting.
The proceeds of the notes will likely be used for onward lending actions, as per the submitting.
“Until in any other case specified within the related pricing complement, the online proceeds from every situation of notes will likely be utilized by the issuer for the aim of onward lending and different actions as could also be permitted by the ECB (exterior business borrowing) pointers, in accordance with the approvals granted by the RBI,” Muthoot Finance stated.
The pricing date of the notes, which will likely be listed on NSE IFSC Restricted, is Might 7, 2024, and the closing and settlement is anticipated inside 5 working days from the pricing date.
Muthoot Finance has subsidiaries equivalent to Belstar Microfinance, Muthoot Homefin, and Muthoot Cash. The corporate’s consolidated property beneath administration grew 27 per cent YoY to ₹82,773 crore as at 9 months of FY24 as in opposition to ₹65,085 crore final yr.
The gold mortgage firm’s standalone AUM stood at ₹70,852 crore as at December-end 2023. Its subsidiaries’ mixed AUM stood at ₹11,921 crore.