Muthoot Finance launches NCD issue offering 6.60-8.25% interest
NEW DELHI: Gold loan non-banking financial company (NBBC) Muthoot Finance Ltd on Thursday launched its 25th issue of secured public non-convertible bonds (NCDs), with an aim to raise up to ₹1,700 crore. The NCD, rated AA+ by rating agencies, is offering an effective yield in the range of 6.60-8.25% per annum.
The NCD has a base issue size of Rs100 crore with an option to retain oversubscription of up to Rs1,600 crore.
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The secured NCDs have a stable outlook from Crisil Ltd and Icra Ltd. These ratings mean that debentures carry low credit risk but are not as safe as AAA-rated instruments.
There are eight investment options with monthly or annual interest payment frequency or on maturity redemption payments. Investors can lock in money for a period of 26, 38, 60 and 120 months in these secured NCDs, which are proposed to be listed on BSE. Investors should note that secured NCDs don’t mean they are completely risk-free.
“In this issue, investors get the twin advantage of better rating as well as an attractive interest rate. We have also introduced a 10-year NCD for those investors who want to lock in the interest rates for a longer period,” said George Alexander Muthoot, managing director, Muthoot Finance.
The company has so far raised around Rs7,392.20 crore via 24 public NCD issues since 2011.
The NCD, which will close on 29 April, has a face value of Rs1,000 with a minimum application size of Rs10,000, and in multiples of one NCD, thereafter.
