India’s Muthoot Finance snags $450m through maiden offshore bond issue

Photo: Mint

Gold loan financier Muthoot Finance Ltd has raised $450 million through its maiden offshore bond issue from investors across the US, Asia and Europe, the company said in a statement on Tuesday.

The bonds will mature in three years and have a coupon rate of 6.125%. “The proceeds will be used for permitted purposes including onward lending in accordance with RBI’s (Reserve Bank of India) ECB guidelines and other applicable laws,” the company said.

The bond sale received orders in excess of $1.2 billion, with the issue subscribed over 2.5 times. The transaction witnessed 37% participation from Asia, 28% from Europe & Middle East, and 35% from the US, with 88% investments from asset managers , 6% from insurance and pension funds, and 6% from rest. The bonds will be listed on the London Stock Exchange.

Deutsche Bank and Standard Chartered Bank advised the company on the fundraise.

“The deal saw an overwhelming response from the global investor base, an exhibit of the strong credit profile of Muthoot Finance. On the back of a robust marketing effort, we were able to achieve a 2.5x oversubscription and tap quality investors across geographies,” said Sameer Gupta, head of India debt capital markets at Deutsche Bank.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.