Muthoot Finance , a leading non-banking financial company (NBFC) in India, has successfully priced USD 600 million worth of Fixed Rate Notes under its USD 2 billion Global Medium Term Note (GMTN) Programme. The company's Finance Committee approved the pricing, tenure, and terms on August 26, 2025, marking a significant move in its international fundraising efforts.

Key Details of the Notes

• Issue Size: USD 600 million
• Coupon Rate: 6.375% per annum
• Maturity: March 2, 2030
• Average Maturity: 4 years
• Issue Price: 99.996% of face value
• Listing: Proposed to be listed on NSE IFSC Limited

Amortization and Interest Schedule

The notes feature a structured repayment plan with five amortization payments:

1. March 2, 2029
2. June 2, 2029
3. September 2, 2029
4. December 2, 2029
5. March 2, 2030 (Final payment)

Interest payments are scheduled semi-annually on March 2 and September 2 each year, commencing from September 2, 2025.

Security and Use of Proceeds

The notes are secured by a first-ranking pari passu charge over Muthoot Finance's current assets, including book debts, loans, advances, and receivables, with a specific focus on gold loan receivables. This security structure underscores the company's strong asset base in the gold loan segment.

Proceeds from the issue will be utilized for onward lending activities, adhering to the Reserve Bank of India's (RBI) External Commercial Borrowing Guidelines and Foreign Exchange Management Regulations. This aligns with Muthoot Finance's core business of providing gold loans and other financial services.

Regulatory Compliance and Approval

The issuance is in compliance with the Foreign Exchange Management (Borrowing and Lending) Regulations 2018 and the RBI's Master Direction on External Commercial Borrowings. Muthoot Finance has obtained necessary approvals from the RBI for this international fundraising initiative.

Closing and Settlement

The closing and settlement of the notes are expected to occur on September 2, 2025, approximately five working days from the pricing date. This timeline allows for the completion of necessary documentation and regulatory procedures.

Market Implications

This successful pricing of USD 600 million notes by Muthoot Finance demonstrates the company's strong standing in international financial markets. The competitive coupon rate of 6.375% reflects investor confidence in Muthoot Finance's business model and financial health.

The issuance under the GMTN Programme provides Muthoot Finance with additional liquidity to expand its lending operations, potentially leading to growth in its core gold loan business and other financial services. It also showcases the company's ability to diversify its funding sources beyond domestic markets, which could enhance its financial flexibility and support its long-term growth strategies.

As Muthoot Finance continues to strengthen its position in the NBFC sector, this international bond issuance marks a significant milestone in its corporate journey, potentially setting a precedent for other Indian NBFCs looking to tap into global capital markets.

Muthoot Finance , a leading non-banking financial company (NBFC), has made a significant move to bolster its presence in the housing finance sector. The company has infused ₹200 crore into its wholly-owned subsidiary, Muthoot Homefin (India) Ltd, as part of an ambitious expansion strategy.

Expansion Plans

The capital injection is aimed at expanding Muthoot Homefin's operations into more than 250 cities across India. This move is expected to significantly increase the housing finance unit's footprint, particularly in tier-II and tier-III markets.

Growth Targets

Muthoot Finance has set an ambitious target for its housing finance subsidiary. The company aims to scale Muthoot Homefin's assets under management (AUM) more than fourfold over the next five years. This growth strategy is focused on strengthening the company's presence in the affordable housing segment.

Recent Performance

Muthoot Homefin has already been showing impressive growth:

• Disbursements have grown nearly six times in the last two years
• Assets under management have doubled to ₹3,096.00 crore

Utilization of Funds

The ₹200.00 crore capital infusion will be used for multiple purposes:

1. Expanding the lending portfolio
2. Enhancing digital infrastructure
3. Increasing the workforce

Strategic Focus

George Alexander Muthoot, Managing Director of Muthoot Finance, emphasized the company's strategic focus:

• Targeting tier-II and tier-III cities for housing growth
• Focusing on first-time home buyers
• Catering to self-employed customers

This move by Muthoot Finance reflects the company's commitment to the housing finance sector and its recognition of the growth potential in smaller cities and towns across India. By strengthening Muthoot Homefin's position, the company is poised to capitalize on the increasing demand for affordable housing in these markets.