Gold loan focused non-bank lender Muthoot Finance has announced plans to raise up to Rs 1,000 crore through a public issue of secured, redeemable non-convertible debentures (NCDs). This will be the 33rd public issue for the company, which is already the largest gold loan financier with over Rs 60,000 crore of loan outstanding. The NCDs have a base issue size of Rs 100 crore, with the option to retain oversubscription up to Rs 900 crore. The NCDs have been rated AA+ by Crisil and Icra, and will be listed on the BSE post allotment.
The public issue will open on January 8 and close on January 19, with the option to close earlier if decided by the board. Muthoot Finance, based in Kochi, is offering investors seven investment options for the NCDs. The options include different interest payment frequencies, ranging from monthly or annual to on maturity redemption. The interest rates will range from 8.75-9% per annum, according to the company’s managing director George Alexander Muthoot.
