Muthoot Finance has provided an update regarding its US$4 Billion Global Medium Term Note (GMTN) Programme. The company announced a 144A/Reg-S tap of its US$600M bond due March 2030 with initial pricing guidance. The senior secured notes are rated ‘Bal’ by Moody’s and ‘BB+’ by S&P. The funds will be used for onward lending and other activities.
GMTN Programme Update
Muthoot Finance has announced an update on its existing US$4 Billion Global Medium Term Note Programme. This announcement follows prior updates on October 19, 2019, and April 18, 2024, regarding the issuance of Senior Secured Notes under the GMTN Programme.
Details of the Tap
The company is proceeding with a 144A/Reg-S tap of its US$600M bond due March 2030. Initial price guidance (PX) has been released.
Key Features of the Notes
- Issuer: Muthoot Finance Limited
- Issuer Rating: Bal (Stable) by Moody’s, BB+ (Stable) by S&P and BB+ (Stable) by Fitch
- Expected Issue Rating: Bal by Moody’s and BB+ by S&P
- Instrument: Senior secured US$ bonds
- Security: First ranking pari passu charge over current assets, book debts, loans and advances, receivables, including gold loan receivables.
Bond Details
- Format: 144A / Reg S, Category 1, Drawdown off GMTN program
- Original Notes: US$600 million 6.375% Senior Secured Notes due March 2, 2030
- Re-opening Size: US$ Benchmark
- Coupon: 6.375% Fixed, semi-annual, 30/360
Amortization Schedule
The bonds feature an amortization schedule:
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2-Mar-29
2-Jun-29
2-Sep-29
2-Dec-29
2-Mar-30
20%
20%
20%
20%
20%
Use of Proceeds
The proceeds from the issuance of these Notes will be used for onward lending and other activities, in accordance with applicable regulations.
Change of Control
A “Change of Control” is defined in specific terms, including situations where the Promoter Group no longer holds Control of the Issuer or at least 50% of the voting rights.
Maintenance Covenants
The company is required to maintain a Capital Adequacy Ratio that complies with RBI requirements and a Security Coverage Ratio of >= 1.0x.
Source: BSE
