Muthoot Finance Limited, India’s leading gold loan non-banking financial company (NBFC), announced an update on its $4 billion Global Medium Term Note (GMTN) Programme, confirming the issuance of US$600 million in Senior Secured Notes due March 2030.
Key details of the issuance
According to the company’s filing with the exchanges, the 6.375% fixed coupon bonds will be issued under Rule 144A/Reg S format, and are expected to settle on October 14, 2025, with semi-annual payments starting March 2, 2026. The bonds will mature on March 2, 2030, and will be listed on NSE International Exchange (NSE IX).
The issue carries ratings of Ba1 (Stable) by Moody’s and BB+ (Stable) by both S&P and Fitch.
Security will be provided through a first-ranking pari passu charge over Muthoot Finance’s current assets, including gold loan receivables, book debts, loans, and advances, both present and future.
Utilisation of proceeds
The company stated that the proceeds from this bond issuance will be used for onward lending and other activities in line with the approvals granted by the Reserve Bank of India (RBI) and in compliance with External Commercial Borrowing (ECB) guidelines.
Financial covenants and structure
The notes include key maintenance covenants:
- Capital Adequacy Ratio to comply with RBI norms.
- Security Coverage Ratio of at least 1.0x, excluding Stage 3 (NPA) assets.
The amortisation schedule divides repayments equally (20%) across five quarters starting March 2029 through March 2030, ensuring a staggered redemption profile.
Joint global coordinators and bookrunners
The transaction is being jointly managed by Deutsche Bank and Standard Chartered Bank, with settlement expected during Asia hours.
Outlook
The issuance marks another strategic step for Muthoot Finance in strengthening its offshore borrowing base and diversifying its funding mix. The company had previously updated its GMTN Programme in April 2024, and the new bond tap signals investor confidence in the firm’s stability and growth trajectory amid steady demand for gold-backed lending.
Disclaimer: The information provided is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.
