Muthoot Finance Ltd, the largest gold financing company in India, has opened a public issue of Non-Convertible Debentures – Secured & Unsecured (NCDs).
Through this NCD issue the company plans to raise an amount up to Rs. 250 crore, with a right to retain oversubscription of Rs. 250 crores, thus with a total issue size of Rs. 500 crores. The issue opened on December 11, 2015 and will close on January 11, 2016, with an option for early closure.
The NCDs under this issue have been rated ‘AA-/Stable’ by CRISIL indicating high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.
The funds raised through this issue will be used primarily for lending activities.
This is 14th NCD Public Issue from Muthoot Finance with investment tenors ranging from 400 days to 87 months and is offering coupon rates ranging from 9% to 10% for individuals and corporates with monthly and annual coupon payment options or only maturity benefit options.
Post allotment, the NCDs will be listed on BSE.
ICICI Securities Ltd and A.K Capital Services Ltd are the Lead Managers to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee to the Issue, Link Intime India Pvt Ltd is the registrar to the Issue.