Muthoot Finance to raise Rs 2,000 crore via debenture issue
There are 10 investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum. ranging from 8 percent to 9 percent.
Muthoot Finance Ltd, a gold financing company in India, has announced its 17th series of Public Issue of non-convertible redeemable debentures of face value of Rs 1,000 each aggregating upto Rs 1,950 crores and Unsecured Redeemable Non-Convertible Debentures (“Unsecured NCDs”) of face value of Rs 1,000 each aggregating upto Rs 50 crores, totalling upto Rs 2,000 crores. The tranche issue is with a base issue size of Rs 200 crores with an option to retain oversubscription upto shelf limit of Rs 2,000 crores.
The issue opens on 11 April, 2017 and closes on 10 May, 2017 with an option to close earlier and/or extend up to 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.
George Alexander, MD, Muthoot Finance said, “The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60 percent of the total issue size. ”
The NCDs are proposed to be listed on BSE Limited. There are 10 investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from 8 percent to 9 percent. The investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96 months with an effective yield per annum of 9.06 percent.
The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Kochi-based company declared a dividend payout of Rs 4 a share for the fiscal.
Kerala's gold loan companies- Muthoot Finance, Manappuram Finance and Muthoot Fincorp - together hold nearly 200 tonnes of gold jewellery, which is higher than the gold reserves of Singapore, Sweden or Australia, a Times of India article pointed out on Sunday.<br />