Muthoot Finance Limited , a leading Indian financial services company, has successfully settled USD 600 million worth of 6.375% Senior Secured Notes that were due in 2030. The notes were issued under the company's $2 billion Global Medium Term Note Programme.

Key Details of the Settlement

The Finance Committee of Muthoot Finance's Board of Directors approved the settlement and allotment of the notes at its meeting held on September 2, 2025. The notes will be listed on the NSE IFSC Limited.

Terms of the Notes

• Size of the Issue: USD 600.00 Million
• Coupon Rate: 6.375%
• Maturity: March 2, 2030
• Listing: NSE IFSC Limited

Amortization Schedule

The notes will be repaid in five installments:

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

Interest Payment Details

Interest on the notes will be paid semi-annually on March 2 and September 2 each year, commencing from March 2, 2026.

Security

The notes are secured by a first-ranking pari passu charge (by way of hypothecation) over all current assets, book debts, loans and advances, receivables, including gold loan receivables, both present and future.

Use of Proceeds

The net proceeds from the issue will be used by Muthoot Finance for onward lending and other activities permitted by the ECB Guidelines, in accordance with approvals granted by the Reserve Bank of India.

This settlement demonstrates Muthoot Finance's strong financial position and its ability to manage long-term debt obligations effectively. The successful completion of this transaction also highlights the company's continued access to international capital markets, which can support its future growth and expansion plans.

As one of India's largest gold financing companies, Muthoot Finance's ability to raise and settle substantial amounts of foreign currency denominated debt underscores its robust business model and financial stability in the non-banking financial services sector.

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.