Muthoot Microfin Raises ₹3.75 Billion via Dual Debenture Issuance to Boost Lending Capacity

Muthoot Microfin Ltd, a leading player in India’s microfinance sector, has issued a total of 37,500 non-convertible debentures (NCDs) in two separate tranches. The first tranche includes 25,000 debentures worth ₹2.50 billion, while the second tranche comprises 12,500 debentures valued at ₹1.25 billion. These secured instruments are listed on BSE and carry attractive interest rates ranging from 9.80% to 10.00% annually, depending on tenure.

The funds raised will be deployed to expand Muthoot Microfin’s lending portfolio, particularly targeting rural and semi-urban borrowers. The issuance aligns with the company’s strategy to diversify funding sources and maintain robust liquidity for its growing customer base. Both tranches have received AAA ratings from leading credit agencies, reflecting strong investor confidence.

Key highlights and major takeaways

• Total capital raised: ₹3.75 billion via 37,500 NCDs  
• Tranche 1: 25,000 debentures worth ₹2.50 billion  
• Tranche 2: 12,500 debentures worth ₹1.25 billion  
• Interest rates: 9.80% to 10.00% annually  
• Tenure: 24 to 36 months  
• Credit rating: AAA by CRISIL and India Ratings  
• Purpose: Expand lending operations and improve liquidity  
   

Sources: Muthoot Microfin Official Filing, ScanX News, MarketScreener