NCD Issue Muthoot Finance Ltd Tranche I – Oct 2020

Muthoot Finance Ltd is coming out  with a public issue of Secured, Redeemable, Non Convertible Debentures (NCDs) of face value of Rs. 1000 each for an amount of Rs. 100 Cr. The Issue is open for subscription on 27 Oct 2020 and closes on 20 Nov 2020.

 Product Note

Muthoot Finance Ltd NCD Issue Highlights

IssuerMuthoot Finance Ltd
Nature of InstrumentSecured Redeemable NCD
Mode of IssuePublic Issue
Issue Open27 Oct 2020
Issue Close20 Oct 2020
DepositoriesCDSL / NSDL
RegistrarLink Intime India Pvt Ltd
Issue Size100 Cr
Issue Price1,000
Face Value1,000
Min Application Size10,000
Credit Rating“[ICRA] AA [stable] &
CRISIL AA/positive
Trading ModeD’mat form only

Specific Term of Issue

Interest FrequencyMonthlyMonthlyAnnualAnnualNANA
Period38 Month60 Month38 Month60 Month38 Month60 Month
Base Coupon7.15%7.50%7.40%7.75%NANA
Additional Incentive for Cat III & IV0.25%0.25%0.25%0.25%NANA
Effective Yield (Cat III & IV)7.40%7.75%7.65%8.00%7.65%8.00%
Face Value1,0001,0001,0001,0001,0001,000
Maturity Amt (Cat III & IV)1,0001,0001,0001,0001263.411469.33

 About Company

The funds raised through this issue will be utilised by the Muthoot Finance for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes.

Muthoot Finance Ltd is largest gold loan NBFC in India in terms of loan portfolio. According to the ICRA Analytics Ltd Industry report.

Muthoot Finance provide personal loans and business loans secured by gold jewellery, or Gold loans, primarily to individuals who possess gold jewellery but are not able to 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 requirement.