MUMBAI: Muthoot Microfin, the microfinance subsidiary of Muthoot Pappachan Group, plans to raise Rs 2,800 crore this year through External Commercial Borrowings (ECBs) and nonconvertible debentures (NCDs) in the current financial year to meet its loan growth.
The company, which expects a growth of 25-30% in its disbursals in the current fiscal, plans to raise Rs800 crore through ECBs and the rest via NCDs. “We have planned for around Rs800 crore of ECBs for this year out of which we already have approval for $50 million.
We will be drawing that down once we see the stability in dollar rate,” Sadaf Sayeed, chief executive officer, Muthoot Microfin told this newspaper. “We raised around Rs 1,300 crore via NCDs last year and this year we plan to raise around Rs 2,000 crore this fiscal through NCDs. There is going to be more requirement for capital this year to meet our strong loan growth,” he said.
The company is also undergoing an ESG (environmental, social and governance) rating. The rating will help the company to tap more foreign capital.