Muthoot Finance Ltd. plans to raise ₹300 crore by issuing secured redeemable non-convertible debentures (NCDs) of ₹1,000 each. The issue opens on Thursday and ends October 28.
The proposed issue is the 28th secured NCD comprising base issue size of ₹75 crore with an option to retain over subscription of up to ₹225 crore. The funds would be utilised primarily for lending activities, it said in a statement.
The proposed NCDs have been rated as AA+ (Stable) by Icra denoting a “high degree of safety regarding timely servicing of financial obligations”.
Secured NCD comes with seven investment options with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with coupons ranging from 7.5% to 8% per annum.
