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.