By Bl Kochi Bureau
Copyright thehindubusinessline
Muthoot Finance has raised $600 million from international bond market through an External Commercial Borrowing (ECB) issuance. The funds will be deployed for lending activities, enabling the company to provide additional credit to customers.
The issuance attracted strong global participation, with 36 per cent of the funds from investors in Asia, 15 per cent from EMEA, and 49 per cent from the US. By investor type, 91 per cent of the subscription came from fund and asset managers, 4 per cent from private banks and banks, 4 per cent from insurance companies, and the remaining 1 per cent from other investors.
The fundraise, under the $2 billion Global Medium-Term Note (GMTN) Programme, has been priced at 6.375 per cent with a door-to-door tenor of 4.5 years and a weighted average life of 4 years. The notes are rated BB+ by S&P and Ba1 by Moody’s. This marks the fifth drawdown under the GMTN programme since May 2024, bringing the total funds raised via this route to $2 billion. This is the first issuance by Muthoot Finance following its rating upgrades by S&P Global in March 2025 and Moody’s in April 2025.
George Alexander Muthoot, Managing Director, Muthoot Finance, said: “The successful ECB highlights our robust growth strategy, governance practices and marks another step in our expansion journey. This issuance is part of our ongoing efforts to diversify funding sources and further strengthen our international fundraising profile. With the continued support of our partners and investors, we remain well-positioned to scale our lending activities in the gold loan sector, expand our presence across India, and contribute meaningfully to the country’s growth story.”
The issuance was managed by Deutsche Bank and Standard Chartered as Joint Global Coordinators and Bookrunners, said a press note.
Published on September 15, 2025
