Mufin Green Finance Approves Issuance of Non-Convertible Debentures up to Rs 50 Crore to Boost Growth and Sustainability Initiatives

Mufin Green Finance Limited, a trailblazer in the green finance sector focused on sustainable and inclusive credit solutions, has announced the approval of an issuance of listed, secured, non-convertible debentures (NCDs) amounting to Rs 50 crore (500 million rupees). The board of directors gave the green light during their meeting on August 28, 2025, marking a crucial step in the company’s journey to augment capital for growth, operational expansion, and strengthening its financial standing.

Key Highlights of the Debenture Issuance

The board approved the private placement of listed, secured non-convertible debentures up to a cumulative amount of Rs 50 crore to eligible investors and institutions.

In alignment with stringent regulatory and compliance requirements, the debentures will be allotted through a private placement basis, ensuring efficient and timely capital mobilization.

Alongside the debenture issuance, the board approved the appointment of new statutory auditors, M/s. Gaur & Associates, Chartered Accountants, effective August 28, 2025, subject to shareholder approval at the upcoming Annual General Meeting.

Additionally, M/s. Abhay K & Associates was appointed as the secretarial auditors for a five-year tenure starting FY 2025-26, contingent on shareholders’ nod.

The company also scheduled its Annual General Meeting for September 29, 2025, where these key appointments and matters will be tabled for shareholder decision.

Understanding the Purpose and Strategic Importance

The issuance of non-convertible debentures represents a strategic financing option for Mufin Green Finance, allowing the company to raise stable long-term capital without diluting equity. These debentures will provide the financial flexibility required to accelerate investments in green energy financing, electric vehicle (EV) lending, and other eco-friendly initiatives.

By raising funds through secured debt instruments, Mufin can deploy capital into high-growth areas such as credit for underserved and unbanked segments, helping to foster economic and environmental sustainability. The funds will also support ongoing operations and expansion into new markets, strengthening Mufin’s position in India's burgeoning green finance ecosystem.

Details of the Debt Instruments and Compliance

The proposed NCDs are characterized by their secured nature, ensuring safety for investors through collateralized receivables or book debts. The coupon rate, maturity period, coupon payment frequency, and other terms will be structured competitively to attract institutional investors looking for predictable returns with manageable risks.

Issuing NCDs through private placement under regulatory frameworks aligns with contemporary capital raising methods for Non-Banking Financial Companies (NBFCs) like Mufin Green Finance. This approach facilitates quicker fund access relative to public offers, supporting agile business needs in a dynamic market.

Corporate Governance and Audit Enhancements

Strengthening governance is a parallel priority for Mufin Green Finance. The appointment of seasoned audit firms as statutory and secretarial auditors speaks to the company’s commitment to transparency, regulatory adherence, and robust internal controls. These expert auditors will oversee accurate financial reporting and corporate governance compliance for the forthcoming years.

Mufin’s proactive governance stance reassures stakeholders of the company’s dedication to sound management practices and sustainable growth.

Market Implications and Future Outlook

As the green finance market gains momentum driven by climate-friendly policies, electric mobility mandates, and environmental awareness, companies like Mufin are well-positioned to capitalize on emerging opportunities. The new funds raised through this NCD issuance will contribute to scaling lending operations targeting environmentally impactful projects.

The company’s ongoing innovation in finance products and strategic market expansion are expected to drive long-term shareholder value and social impact. By offering credit solutions that enable greener lifestyles and economic inclusion, Mufin supports India's path to sustainable development goals.

Conclusion

The approval and planned issuance of up to Rs 50 crore in non-convertible debentures by Mufin Green Finance marks a significant milestone in its capacity-building journey. The combination of strategic fund raising and enhanced audit oversight empowers Mufin to continue delivering innovative green financing solutions with reliability, growth, and responsible governance.

Sources: Moneycontrol, TradingView, Securities and Exchange Board of India filings, Mufin Green Finance official disclosures