Muthoot Finance Ltd announced raising Rs 300 crore by issuing secured redeemable non-convertible debentures (NCDs) of Rs 1,000 each. From 6 October to 28 October, the issue will be open with an option to close on an earlier date or extended as a board of directors (BOD) or the non-convertible debentures (NCDs) committee. The size of the issue of Rs 75 crore, with a subscription option of up to Rs 225 crore.

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The proposed NCDs have been rated as AA+ (Stable) by ICRA, denoting a “high degree of safety regarding timely servicing of financial obligations”. The proposed NCDs are to allot based on a first-come, first-serve basis with the investors. There are seven options for individual investors for secured NCDs with annual interest as well monthly interest payment frequency or on-maturity redemption payment with coupons ranging from 7.5 per cent to 8 per cent per annum.

“We are delighted to announce our 28th public issue of Secured Redeemable Non-Convertible Debentures. As we have an AA+/Stable rating by ICRA and offer attractive interest rates, we are sure this edition of NCD will see ample subscriptions. We have allocated 90 per cent of the issue for retail and high net worth individual investors who will be getting 0.50 per cent p.a more than the interest rate applicable for institutions and corporates,” said George Alexander Muthoot, managing director of Muthoot Finance.  

The issue will be raised through the lending activities of the company. A K Capital Services Limited and IDBI Trusteeship Services is the lead manager for the issue and debenture trustee, respectively. The registrar of the company is Link Intime India Private.