Kochi, 16th January, 2017: Muthoot Finance Ltd, the largest gold financing company in India, has opened a public issue of Non-Convertible Debentures – Secured & Unsecured (NCDs).
Muthoot Finance Ltd announces its 16th series of Public Issue of Non-convertible Redeemable Debentures. Company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of Rs. 1,000 each aggregating upto Rs. 1300 crores and Unsecured Redeemable Non-Convertible Debentures (“Unsecured NCDs”) of face value of Rs. 1,000 each aggregating upto Rs. 100 crores, totalling upto Rs. 1400 crores (“Shelf Limit”). The Tranche issue is with a base issue size of ₹ 200 crores with an option to retain oversubscription upto shelf limit of Rs. 1400 crores (“Tranche I issue”).
The issue opens on January 17, 2017 and closes on February 17, 2017 with an option to close earlier and/or extend upto a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two Credit Rating Agencies – CRISIL and ICRA. Both agencies have awarded long term debt rating of ’AA/Stable’ for the debentures offered under the issue. The rating scale indicates ‘High degree of safety regarding timely servicing of financial obligations and very low credit risk’.
The NCDs are proposed to be listed on BSE Limited.
There are ten investment options for Secured NCDs with Monthly or Annual interest payment frequency or On maturity redemption payments with effective yield p.a. ranging from 8.25% to 9.25% for Retail Investors.
The investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96months with an effective yield p.a. of 9.06% for Retail Investors.
The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Lead Managers to the issue are Edelweiss Financial Services Limited and A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee. Link Intime India Private Limited is the Registrar to the Issue.
Quoting on the issue , George Alexander Muthoot has said “This is the first public issue by the Company after rating upgrade by CRISIL and ICRA on our long term debt instruments to ‘AA/Stable’. Given the current liquidity condition and low interest rates offered on bank deposits, the rate of interest offered in the current issue will be an attractive investment option for retail investors. We have allocated 70% of the issue for retail investors.”
About Muthoot Finance Ltd:
Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a ‘Systemically Important Non-deposit taking NBFC’ headquartered in the southern Indian state of Kerala.
Operating history of Muthoot Finance has evolved over a period of 76 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.
The company provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. Company is listed on both National Stock Exchange and BSE Ltd.