Muthoot Finance Raises $550 Million Via Bonds
The proceeds of the issue will be used for towards lending, the company said in a release.
Gold loan financier Muthoot Finance on Friday said it has raised $550 million (around Rs 3,900 crore) through dollar bond, offering a coupon of 4.4 percent.
The proceeds of the issue will be used for towards lending, the company said in a release.
Last year in October, it had raised $450 million through its maiden three-year bond.
“The response from international bond investors in our second issue is quite overwhelming. This fund raise will enable us in further diversifying and strengthening our sources of funding.” - Chairman MG George Muthoot
The transaction saw 37 percent participation from Asia, 13 percent from Europe and 50 percent from the U.S.
The bond was launched with an initial pricing guidance of 4.750 percent on February 20, but with a strong demand from investors, the company was able to tighten pricing by 35 basis points to 4.4 percent, the release said.
Around 89 percent of investments came from fund managers, six percent from private banks, three percent from insurance and banks and two percent from others.
The bonds will be listed on International Securities Market of the London Stock Exchange.
Deutsche Bank and Standard Chartered Bank acted as the global coordinators and book runners for the issue.