Muthoot Finance to raise Rs. 1000
crore through NCD
Muthoot Finance
Ltd has announced its 21stseries of Public Issue of Secured Redeemable
Non-convertible Debentures. The issue is with a base issue size of ₹ 100crores
with an option to retain oversubscription upto ₹ 900crores aggregating upto
tranche limit of ₹ 1,000 crores (“Tranche III issue”).The issue opens on September
27,2019 and closes on October 25,2019with an
option to close on such earlier date or extended date as may be decided bythe
Board of directors or NCD committee.
Mr. George Alexander Muthoot , Managing
Director, Muthoot Finance, said“The issue will help the company to have long term funds and
diversify borrowing basket as well. The previous NCD issues were well received
in the market and were over-subscribed.
He further added, “It provides an opportunity to Retail and
High Networth Individual investors, to whom we have allocated 80% of the total
issue size, with stable and attractive
long term returns when there are only limited comparable alternative avenues
for investments.”
The issue is rated by
two Credit Rating Agencies – CRISIL Ltd and ICRA Ltd. Both agencies have
awarded long term debt rating of ‘AA/Stable’for the debentures
offeredunder the issue.The rating scale denotes‘High degree of safety regarding
timely servicing of financial obligations and very low credit risk’.
The
NCDs are proposed to be listed on BSE.The allotment is based on first come first serve basis.
There are ten investment options for Secured NCDs
with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity
redemption’ payments with effective yield p.a. ranging from 9.25% to 10.00%.
The funds
raised through this issue will be utilised primarily for lending activities of
the Company.
The Lead Managers to the issue are Edelweiss
Financial Services Limited and A. K. Capital Services Limited. IDBI Trusteeship Services Limited is
the Debenture Trustee for the issue. Link
Intime India Private Limited is the Registrar
to the Issue.
For Further information, please contact:
|
Dimple Momaya,
Adfactors Public Relations Pvt Ltd
Contact: +9198207 62036
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