Fitch Affirms Muthoot Finance's Bond Rating as Company Taps $250M in Global Markets

Fitch Ratings has confirmed that Muthoot Finance's recent $250 million tap issuance of its 2029 bond will not affect the company's existing bond ratings. This additional issuance, which follows the initial $400 million raised in October 2024, demonstrates Muthoot's continued access to international debt markets.

 

Key highlights:

 

Muthoot Finance taps an additional $250 million from its 2029 bond

 

Fitch Ratings maintains the company's bond rating, signaling stability

 

Total issuance now stands at $650 million, approaching the $750 million ECB limit

 

Bonds currently trading at 6.7% yield, down from the initial 7.125%

 

The tap issuance, arranged by Deutsche Bank and Standard Chartered, will be priced at $101 instead of par, reflecting improved market conditions. Proceeds will be used for on-lending and other RBI-approved activities under External Commercial Borrowing guidelines.

 

This successful fundraising underscores global investor confidence in India's gold financing sector and Muthoot Finance's strong market position.

 

Sources: Economic Times, Fitch Ratings Press Release, March 21, 2025