Muthoot Finance has successfully gathered bids amounting to $650 million for its three-year and nine-month US dollar-denominated bond issue. The robust demand enabled a lower coupon rate of 7.125%, reduced from the initial 7.375%, showing strong investor confidence.
The company received a substantial $1.8 billion in bids, far exceeding the original offer. This oversubscription highlights the market’s keen interest in Muthoot Finance’s dollar bonds. The funds raised will be utilized for onward lending and other approved activities under external commercial borrowing norms.
Deutsche Bank and Standard Chartered have been appointed as the joint global coordinators and book runners for the bond issue, working alongside DBS Bank and SMBC Nikko. Their collaboration underscores the significance and international interest in this financial venture.
Moody’s Investor Service, Fitch Ratings, and S&P are expected to assign ratings of ‘Ba2’ and ‘BB’ respectively to the bonds. This move comes as other Indian non-banking financial companies like Manappuram Finance and REC also prepare to raise capital through similar dollar bond issues in the coming days.
