Muthoot Microfin Board Approves 2.5 Billion Rupee NCD Issue

MUMBAI, August 28, 2026 — Muthoot Microfin Limited announced on Friday that its Debenture Issue and Allotment Committee approved the issuance of secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) aggregating to 2.5 billion rupees ($250 crore) on a private placement basis.

The decision was finalized during a committee meeting held between 6:10 PM and 6:30 PM on August 28, operating within limits previously established by the company's Board of Directors and shareholders. The institutional fund raise provides Muthoot Microfin with fresh long-term capital to support liquidity and expand microcredit lending across rural and semi-urban markets.

Terms and Financial Structure of the NCD Issuance

The debt issuance consists of up to 250,000 secured Non-Convertible Debentures with a face value of 10,000 rupees each. The total issue size stands at 2.5 billion rupees.

Key parameters of the debt offering include:

• Issuance Type: Private placement of listed, rated, secured, redeemable Non-Convertible Debentures.

• Coupon Rate: Fixed interest rate of 9.25 percent per annum, payable on a monthly schedule.

• Tenure and Maturity: 24-month duration, with a deemed date of allotment set for September 8, 2026, and maturity on September 8, 2028.

• Listing Venue: Proposed for listing on BSE Limited

• Collateral Security: Secured by a first-ranking exclusive charge of 1.0x cover over unencumbered present and future loan receivables.

Regulatory Compliance and Regulatory Disclosure Framework

Muthoot Microfin Limited submitted its mandatory corporate disclosures to financial market regulators pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filings complied with statutory reporting provisions under the SEBI Master Circular dated November 11, 2024.

The company confirmed that no special rights or privileges are attached to the instruments, and noted zero instances of historical defaults or delays in principal and interest payments.

Operational Impact and Market Context

Microfinance institutions in India rely on structured NCD issuances to balance liabilities and manage interest rate exposures. Securing 24-month debt financing at a fixed 9.25 percent annual coupon allows Muthoot Microfin to maintain predictable borrowing costs while expanding credit distribution to joint liability groups and women entrepreneurs across underserved rural economies.

The private placement structure provides institutional investors with a secured debt asset backed by exclusive loan receivable coverage.

Official Sources Section

According to official regulatory filings submitted by Muthoot Microfin Limited to BSE Limited and the National Stock Exchange of India Limited, Chief Compliance Officer and Company Secretary Neethu Ajay formally executed the market disclosures on August 28, 2026.

Quote Section

"According to officials in regulatory filings submitted to stock exchanges, the Debenture Issue and Allotment Committee approved the private placement of NCDs within the overall limits pre-approved by shareholders and the Board of Directors."

Why It Matters

The 2.5 billion rupee capital raise ensures continuous credit access for low-income borrowers relying on microfinance facilities. For institutional investors, the 9.25 percent monthly yield secured by 1.0x asset coverage presents a structured fixed-income option. For the broader non-banking financial sector, the issuance reflects continued institutional demand for rated microfinance debt instruments.

Key Facts at a Glance

• Total Capital Raised: 2.5 billion rupees ($250 crore).

• Coupon Rate: 9.25 percent per annum with monthly interest payouts.

• Tenure: 24 months, maturing on September 8, 2028.

• Security Cover: 1.0x exclusive charge on unencumbered loan receivables.

• Exchange Listing: Proposed for listing on BSE Limited

Frequently Asked Questions (FAQ)

What is the total value of the NCD issue approved by Muthoot Microfin?

Muthoot Microfin Limited approved the issuance of NCDs worth an aggregate nominal value of 2.5 billion rupees (250 crore rupees).

What is the coupon rate and payout frequency for these debentures?

The Non-Convertible Debentures carry a fixed annual coupon rate of 9.25 percent, payable on a monthly schedule.

What is the maturity period of the NCDs?

The debentures have a tenure of 24 months, starting from the deemed date of allotment on September 8, 2026, and maturing on September 8, 2028.

Where will the NCDs be listed?

The secured NCDs are proposed to be listed on BSE Limited.

Source: Official regulatory disclosures filed by Muthoot Microfin Limited with BSE Limited and the National Stock Exchange of India Limited on August 28, 2026.