Muthoot Finance Approves $600 Million Senior Secured Notes Issuance

Muthoot Finance Ltd, India’s leading gold loan NBFC, has announced board approval for the issuance of US$600 million senior secured notes carrying a 5.75% coupon rate. The fundraising initiative is aimed at bolstering the company’s capital structure, ensuring long-term liquidity, and supporting expansion in its lending and financial services businesses.

The issuance reflects Muthoot Finance’s proactive approach to tapping global debt markets, diversifying funding sources, and maintaining financial flexibility. With strong demand for gold-backed loans and rising credit needs, the company is positioning itself to sustain growth momentum while managing borrowing costs effectively.

Key Highlights:

• Issuance Size: US$600 million senior secured notes approved.
• Coupon Rate: Notes carry an interest rate of 5.75%.
• Strategic Purpose: Strengthen funding base and enhance liquidity.
• Market Position: Reinforces leadership in gold loan financing.
• Growth Outlook: Supports expansion in lending and diversified financial services.

Sources: Reuters, Economic Times, Business Standard