Muthoot Finance USD 600 Million Notes: Muthoot Finance Limited, a leading financial services company in India, has approved the settlement and allotment of USD 600 million 6.375% Senior Secured Notes due 2030 under its US$ 2 billion Global Medium Term Note Programme. The decision was made by the Finance Committee of the Board of Directors during a meeting held on September 2, 2025. These notes are set to be listed on the NSE IFSC Limited, marking a significant milestone in Muthoot Finance’s global financing initiatives.
The issuance of these notes is governed by Regulation 144A/ Regulation S of the U.S. Securities Act, 1933, as amended, and complies with applicable Indian regulations. The move reflects the company’s strategic approach to raising funds for onward lending and other permissible activities, in line with RBI approvals and ECB Guidelines. The notes provide investors with an attractive 6.375% coupon rate and a structured amortization schedule, offering both security and predictable returns.
Investors and market participants view this issuance as a strong signal of Muthoot Finance’s commitment to strengthening its capital structure while expanding lending operations. The notes are secured by a first-ranking pari passu charge over current assets, book debts, loans and advances, and receivables, including gold loan receivables, ensuring added security for investors.
Details of Muthoot Finance USD 600 Million Notes
| Parameter | Details |
|---|---|
| Issuer | Muthoot Finance Limited |
| Size of Issue | USD 600 Million |
| Listing | NSE IFSC Limited |
| Average Maturity | 4 Years |
| Issue Date | September 02, 2025 |
| Maturity Date | March 02, 2030 |
| Coupon Rate | 6.375% |
| Interest Payment Dates | March 2 and September 2, commencing March 2, 2026 |
Amortization Schedule
- 1st Amortization Payment: March 02, 2029
- 2nd Amortization Payment: June 02, 2029
- 3rd Amortization Payment: September 02, 2029
- 4th Amortization Payment: December 02, 2029
- 5th and Balance Principal Payment: March 02, 2030
Read about: Muthoot Finance Approves Settlement of USD 600 Million Senior Secured Notes
Security and Charge
The notes are secured by a first-ranking pari passu charge (by hypothecation) over:
- Current assets
- Book debts
- Loans and advances
- Receivables, including gold loan receivables (present and future)
Excluded Collateral: Any property, assets, and/or receivables designated as excluded from the collateral pool. This ensures a clear and structured security framework for noteholders.
Issue Price and Settlement Details
- Issue Price: 99.996%
- Pricing Date: August 26, 2025
- Closing & Settlement Date: September 02, 2025
The net proceeds from the issuance will be applied for onward lending and other permissible activities, strictly adhering to RBI approvals and ECB Guidelines. This strategic fund mobilization allows Muthoot Finance to expand lending operations while maintaining compliance with all regulatory requirements.
Use of Proceeds
The proceeds from the USD 600 million notes will primarily be utilized for:
- Onward lending, including gold loans and other priority sectors
- Other activities permitted under ECB Guidelines
- Ensuring compliance with RBI and Indian regulatory approvals
This allocation underscores the company’s focus on sustainable growth and responsible capital management.
Regulatory Compliance
This issuance is fully compliant with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), ensuring transparency and accountability to investors. By adhering to all applicable laws and guidelines, Muthoot Finance reinforces its commitment to good governance and investor confidence.
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Conclusion
Muthoot Finance’s approval and allotment of USD 600 million 6.375% Senior Secured Notes due 2030 highlight its strategic approach to raising global capital. With a robust amortization schedule, secured collateral, and a competitive coupon rate, the notes are designed to offer security and predictable returns to investors.
The issuance strengthens Muthoot Finance’s ability to expand its lending operations while complying with RBI guidelines and global securities regulations. By mobilizing funds through the Global Medium Term Note Programme, the company ensures liquidity, financial stability, and growth potential in an increasingly competitive financial market.
Investors can look forward to a transparent and structured investment opportunity backed by high-quality collateral, demonstrating the company’s commitment to responsible borrowing and lending practices.
Overall, the settlement of these notes positions Muthoot Finance for sustained growth, improved capital efficiency, and enhanced investor confidence in both domestic and international markets.
FAQs About Muthoot Finance USD 600 Million Notes
1. What is the purpose of issuing these USD 600 million notes?
The proceeds from the notes will be used primarily for onward lending and other activities permitted under ECB Guidelines. This includes expanding gold loans and other lending operations in compliance with RBI approvals. The issuance helps Muthoot Finance strengthen liquidity, diversify funding sources, and enhance capital efficiency.
2. What is the coupon rate and interest payment schedule?
The notes carry a 6.375% coupon rate. Interest payments will be made semi-annually on March 2 and September 2, starting March 2, 2026. The semi-annual payment schedule provides a predictable and steady income stream for investors.
3. How are these notes secured?
These notes are secured by a first-ranking pari passu charge (via hypothecation) over current assets, book debts, loans and advances, and receivables, including gold loan receivables. Certain assets designated as Excluded Collateral are not part of the security pool. This structure offers protection to noteholders while allowing operational flexibility.
4. What is the maturity and amortization schedule?
The notes have an average maturity of 4 years, maturing on March 2, 2030. Principal repayments are scheduled as follows:
- March 2, 2029 – 1st Amortization
- June 2, 2029 – 2nd Amortization
- September 2, 2029 – 3rd Amortization
- December 2, 2029 – 4th Amortization
- March 2, 2030 – Final principal payment
5. Are these notes compliant with regulatory guidelines?
Yes. The issuance adheres to Regulation 144A/ Regulation S of the U.S. Securities Act, 1933, as amended, and complies with Indian regulations, including SEBI LODR 2015. All activities related to the proceeds comply with RBI and ECB Guidelines, ensuring full regulatory compliance and investor protection.