Muthoot Finance Ignites Global Investor Interest with Landmark USD Bond Offering

Muthoot Finance Ltd., India's foremost gold loan non-banking financial company (NBFC), has unveiled an ambitious plan to launch a significant USD-denominated bond offering. This strategic initiative, structured under Rule 144A and Regulation S, is poised to attract a broad spectrum of global institutional investors, fortifying the company's financial stability and powering its future growth trajectory.

The proposed bond offering is meticulously designed to appeal to qualified institutional buyers within the United States, as well as non-US persons located outside the US, ensuring a vast international reach.

These senior secured bonds will be further enhanced by a guarantee from Muthoot Homefin (India) Limited, a wholly-owned subsidiary of Muthoot Finance, thereby elevating their attractiveness to potential investors.

Proceeds generated from this pivotal fundraising endeavor are primarily allocated for general corporate purposes, with a substantial portion earmarked for onward lending activities.

This capital infusion will empower Muthoot Finance to broaden its core operations, serve an expanded customer base, and reinforce its dominant position in the gold loan market, while also exploring opportunities to diversify its lending portfolio.

To facilitate engagement with prospective investors, Muthoot Finance has scheduled a series of crucial investor meetings and roadshows from April 22nd to April 24th, 2024.

These important engagements will span key financial hubs across Asia, Europe, and the United States, providing a direct platform for the company's leadership to present its robust business model and compelling growth prospects to a global audience.

The offering is being orchestrated by a powerful consortium of leading financial institutions.

Barclays, Citigroup, and J.P. Morgan have been appointed as the Joint Global Coordinators and Joint Lead Managers, leveraging their extensive expertise in international capital markets. Complementing this formidable team, Credit Suisse (Singapore) Limited, Emirates NBD Capital Limited, SMBC Nikko Capital Markets Limited, and Standard Chartered Bank will serve as Joint Lead Managers, ensuring comprehensive distribution and widespread investor outreach.

This upcoming bond issuance marks a significant milestone, representing Muthoot Finance's second successful venture into the international bond markets.

The company's prior success in 2021 saw it raise an impressive $550 million through senior secured notes, which boasted a competitive yield of 4.4% and are slated to mature in 2026. This proven track record of successful international fundraising underscores the company's credibility and the market's unwavering confidence in its financial health and operational prowess.

Muthoot Finance's latest initiative also mirrors a wider trend within India's dynamic NBFC sector, which has increasingly looked to the dollar bond market as a crucial source of capital.

This strategic pivot enables Indian financial institutions to access diverse funding pools, mitigate potential currency risks, and secure more favorable terms, ultimately contributing to the robust growth of the Indian economy.