Muthoot Microfin has successfully raised ₹100 crore through the allotment of Non-Convertible Debentures (NCDs) on a private placement basis. The company made this announcement in a regulatory filing on September 12, 2023.

Key Details of the NCD Allotment

• Number of NCDs: 1,00,000 (One Lakh)
• Face Value: ₹10,000 per NCD
• Total Amount Raised: ₹100.00 crore
• Nature of NCDs: Listed, Rated, Senior, Secured, Transferable, and Redeemable
• Allotment Date: September 12, 2023

Approval and Execution

The allotment was approved by Muthoot Microfin's Debenture Issue and Allotment Committee during a meeting held on September 12, 2023. This decision follows the company's earlier intimation regarding the issuance of these debentures, which was communicated on September 3, 2023.

Regulatory Compliance

The company has made this disclosure in compliance with Regulations 30 and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The information was shared with both the BSE Limited and the National Stock Exchange of India Limited, where Muthoot Microfin's shares are listed.

Significance of the Move

This successful NCD allotment represents a strategic financial move for Muthoot Microfin. By raising ₹100.00 crore through private placement, the company has bolstered its capital position, which could potentially be used for various purposes such as expanding its microlending operations, strengthening its balance sheet, or funding other business initiatives.

The secured and rated nature of these NCDs may have made them attractive to investors, allowing the company to raise funds. However, specific details about the interest rates, tenure, and use of proceeds were not disclosed in the regulatory filing.

Upcoming Committee Meeting

In a recent development, Muthoot Microfin Limited has scheduled a meeting of its Debenture Issue and Allotment Committee on September 17, 2023. The purpose of this meeting is to consider and approve fund raising through the issuance of additional Non-Convertible Debentures on a private placement basis. The company has duly informed both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about this scheduled committee meeting.

This upcoming meeting suggests that Muthoot Microfin is exploring further opportunities to strengthen its financial position through debt instruments, following the successful ₹100 crore NCD allotment earlier this month.

Muthoot Microfin , a prominent player in the microfinance sector, has made significant strides in strengthening its financial position through a series of strategic debt fundraising initiatives. The company recently approved a private placement of USD 15 million bonds and ₹150 crore non-convertible debentures (NCDs), structured across three distinct tranches.

Bond Issuance Details

The company's Debenture Issue and Allotment Committee has greenlit the issuance of up to 1,500 secured, rated, listed, redeemable, US Dollar Denominated Bonds. Each bond carries a face value of USD 10,000, collectively amounting to USD 15 million. These bonds are set to be listed on the NSE IFSC Limited and come with a tenure of 36 months, maturing on September 15, 2028.

Key features of the USD bonds include:

• Coupon Rate: 6 Month CME Term SOFR + 275 bps
• Interest Payment: Semi-annual
• Security: First ranking exclusive charge by way of hypothecation over identified receivables with a cover of 1.05 times the outstanding principal and accrued interest

Non-Convertible Debentures (NCDs) Structure

Muthoot Microfin's NCD issuance is divided into two tranches:

First Tranche

Second Tranche

Strategic Implications

This multi-faceted debt raising exercise demonstrates Muthoot Microfin's proactive approach to capital management and its ability to tap into diverse funding sources. The combination of dollar-denominated bonds and rupee-denominated NCDs suggests a balanced strategy to manage currency risks while meeting the company's funding requirements.

The successful placement of these instruments not only bolsters Muthoot Microfin's liquidity position but also reflects the confidence of investors in the company's financial health and growth prospects. As the microfinance sector continues to play a crucial role in financial inclusion, such robust fundraising capabilities position Muthoot Microfin favorably for sustained growth and expansion of its lending activities.