Moody’s Stamps (P)Ba3 On Capri Global’s USD 1 Billion MTN Plan

The GMTN programme will allow Capri Global to tap international debt markets in a flexible manner, issuing notes in multiple tranches, currencies and maturities up to an overall cap of USD 1 billion. The provisional rating is subject to final documentation and will guide pricing and investor appetite once individual issuances are launched.

Assessment Of Credit Strengths

Moody’s assessment factors in Capri Global’s growing scale in secured lending, diversified product mix and track record in segments such as affordable housing, MSME and gold loans. The rating also reflects adequate capitalisation and risk management frameworks appropriate for its current size and business profile.

Key Risks And Constraints

The (P)Ba3 rating sits in the non-investment grade bucket, signalling meaningful, though manageable, credit risk. Key constraints include exposure to relatively vulnerable borrower profiles, asset-quality sensitivity to economic shocks, and the funding challenges typical of mid-sized Indian NBFCs entering hard-currency markets.

Strategic Importance Of The GMTN Programme

Access to a USD 1 billion GMTN shelf gives Capri Global an additional funding lever beyond domestic bank lines and rupee bonds. Over time, successful offshore issuances could diversify its investor base, lengthen liability duration and support growth in core lending businesses, provided currency and refinancing risks are carefully managed.

Key Highlights

1. Provisional (P)Ba3 rating assigned by Moody’s to Capri Global’s USD 1 billion GMTN programme
2. GMTN structure enables flexible, multi-tranche, multi-currency bond issuances
3. Rating reflects established niche franchise, secured lending focus and adequate capital
4. Risks stem from borrower profile, asset-quality sensitivity and funding environment
5. Offshore programme aimed at diversifying funding sources and supporting growth

Sources: Moody’s rating announcement; Capri Global Capital