Muthoot Finance raises $600 mn via ECB, completes $2 bn GMTN target

Muthoot Finance has raised $600 million via ECB, marking the final tranche under its $2 billion GMTN programme, with funds earmarked for lending expansion across India

Muthoot Finance has raised $600 million through an External Commercial Borrowing (ECB) issuance in the international bond markets.

 

This marks the fifth and final drawdown under the Global Medium-Term Note (GMTN) programme since May 2024, with the company now completing its $2 billion target.

 

The bonds, rated BB+ by S&P and Ba1 by Moody’s, were priced at 6.37 per cent with a 4.5-year maturity and an average life of four years.

 

This also represents the company’s first bond issuance since receiving credit rating upgrades from S&P in March 2025 and Moody’s in April 2025.

 

The proceeds will be used to expand Muthoot’s lending operations across India.

 

George Alexander Muthoot, managing director, said: “The successful ECB highlights our strong growth strategy and sound governance, marking another milestone for the company.”

 

The issuance drew strong global interest, underscoring investor confidence in Muthoot’s business fundamentals and growth plans. Investor participation was geographically diverse: 49 per cent from the US, 36 per cent from Asia, and 15 per cent from EMEA. By investor type, 91 per cent of the subscription came from fund and asset managers, followed by banks, private banks, and insurers.