Muthoot Microfin Approves ₹4.5 Billion NCD Issuance to Strengthen Funding Base

 Inside the announcement  
According to Business Standard and FilingReader, Muthoot Microfin’s Debenture Issue and Allotment Committee cleared two distinct sets of NCDs on November 27, 2025. The first issuance comprises 150,000 listed, rated, senior secured NCDs with a face value of ₹10,000 each, totaling ₹1.5 billion. These are split into two series, maturing in 23–24 months, with a coupon rate of 9.70% paid monthly.  

The second issuance involves 30,000 secured, rated, listed, redeemable taxable NCDs with a face value of ₹100,000 each, aggregating ₹3 billion. Both issuances will be listed on BSE and backed by receivables, ensuring investor security.  

Notable updates  
• Total issuance: ₹4.5 billion via private placement  
• Series A and B NCDs: 23–24 month maturity, 9.70% monthly coupon  
• Taxable NCDs: ₹3 billion, secured and listed on BSE  
• Purpose: Diversify funding, support microfinance lending, and strengthen liquidity  
• Security cover: Receivables pledged with 1.05x cover  

Major takeaway  
The approval underscores Muthoot Microfin’s strategy to tap debt markets for stable funding. By offering secured, rated instruments with attractive yields, the company aims to balance investor confidence with operational growth in India’s expanding microfinance sector.  

Sources: Business Standard FilingReader, ScanX News