MUMBAI: The largest pureplay gold loan NBFC, Muthoot Finance, has raised $400 million (around Rs 3350 crore) through the external commercial borrowings (ECB) route by issuing secured notes under its global medium term note programme of $2 billion.
The Kochi-based company said in a statement Wednesday that the 4.5 year money would fetch the investor an annualised coupon of 6.375 percent.
The company got good subscription with the order book peaking over $1.3 billion or an oversubscription of 3.9x from over 125 investors across the globe.
The funds raised will be used for onward lending and other activities permitted under ECB guidelines and will be traded on the NSE IX, Gift City.
Muthoot Finance had previously raised $450 million in 2019 and $550 million in 2020 in ECBs, which were repaid on the respective due dates in 2022 and 2023 respectively.
In the current financial year, it had already raised $750 million under the ECB route in 3.75 year money at a coupon of 7.125 percent.
"This $400 million fund raise is part of our $2 billion global medium term mote programme, and will further strengthen our partnership with global investors. This issue comes at cheaper rate of of 6.375 percent vis-Ă -vis the earlier issuance at 7.125 percent even though the period has increased to 4.5 years from 3.75 years. The issue will help the company to achieve higher loan disbursements as well as further diversify the sources of its borrowing and widen the investor base," said George Alexander Muthoot, the managing director of the company.