Muthoot Finance Ltd to raise Rs. 300 crores through Public Issue of Secured Redeemable Non-Convertible Debentures in its 29th series

● The issue offers attractive rate of return of 7.75% to 8.25% to Retail and HNI investors. The interest rate has been increased by 0.25%-0.35% p.a. as compared to the last issue

● Indicating high degree of safety, the proposed NCD issue is rated as AA+ (Stable) by ICRA

● This issue of Secured Redeemable Non-Convertible Debentures will be open to subscription starting November 28th, 2022 till 19th December, 2022

India, November 25, 2022: Muthoot Finance Ltd has announced its 29th series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each. The issue is with a base issue size of Rs. 75 crores with an option to retain oversubscription up to Rs. 225 crores aggregating up to tranche limit of Rs. 300 crores (Issue). The Issue is set to open on November 28, 2022 and will close on December 19, 2022, with an option to close on a much earlier date or on extended date, as may be decided by the Board of Directors or NCD committee.

The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. The rating of the Secured NCDs by ICRA indicates ‘high degree of safety regarding timely servicing of financial obligations’.

The NCDs are proposed to be listed on BSE. The allotment will be on a first come first serve basis.

There are 7 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments. For Individual Investors, the interest rate for these investment options are ranging from 7.75% p.a to 8.25% p.a., which has increased by 0.25%-0.35% p.a. from the last issue. 90% of this issue is allotted for retail and high networth individual investors who will be benefited with 0.50% p.a more than the interest rate applicable for institutions and corporates.

We plan to utilise these funds primarily in our lending activities.

Speaking about the NCD issue, Mr. George Alexander Muthoot, Managing Director, Muthoot Finance Ltd. said, “We, at Muthoot Finance, are happy to announce the launch of our 29th series of Public Issue of Secured Redeemable Non-Convertible Debentures. We plan to utilise these funds in our primary lending activities. With the backdrop of the increase in interest rates by RBI, we have also increased interest rates on NCDs offered in this issue by 0.25%-0.35% p.a. for tenors of 2, 3 and 5 years. We value the safety of our investors and assure them with our AA+/Stable rating, coupled with an attractive rate of return of 7.75% to 8.25% p.a. We expect that the issue will see good demand from investors.”

The Lead Manager to the Issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.