Gold financier Muthoot Finance raises $600 million via overseas bond issue

Gold financier Muthoot Finance raised $600 million through a senior secured bond issue under its $4 billion Global Medium Term Note programme

Muthoot Finance raised $600 million (around Rs 5,500 crore) through a senior secured bond issuance under its $4 billion Global Medium Term Note programme, the gold financier said in a press release.

 

The bonds carry a coupon of 5.75 per cent per annum and have a door-to-door tenor of 4.5 years, with an average maturity of four years.

 

Deutsche Bank and Standard Chartered Bank acted as arrangers and dealers for the transaction.

 

The order book peaked at over $2.1 billion, representing an oversubscription of nearly 3.8 times, with participation from more than 160 investors across global markets. The bonds are rated Ba1 by Moody’s and BB+ by S&P, and were issued in compliance with Rule 144A and Regulation S under the US Securities Act of 1933.

 

 

According to the company, the transaction achieved the tightest spread over comparable US Treasury yields and the lowest coupon secured by the company in the past five years, aided by strong investor demand and timely execution.

 

The funds raised will be used for onward lending and other purposes permitted under the Reserve Bank of India’s external commercial borrowing (ECB) framework.

 

The issuance marked the largest final order book achieved by an Indian private sector non-banking financial company (NBFC) in the international bond markets, the lender said.

 

Real money investors accounted for 96 per cent of the allocation, underscoring strong global investor confidence in the company.

 

George Alexander Muthoot, managing director, Muthoot Finance, said, “This successful ECB issuance reinforces the strong confidence global investors continue to place in Muthoot Finance. The competitive pricing achieved reflects the resilience of our business model, prudent risk management, and consistent financial performance. The issue will help the company achieve higher loan disbursements as well as further diversify its sources of borrowing and widen the investor base, supporting our long-term growth objectives.”

 

In September 2025, Muthoot Finance had raised $600 million through a similar overseas bond issuance, followed by an additional $150 million via a reissue in October 2025, highlighting its continued access to international debt markets.