Muthoot Microfin Limited, the microfinance arm of Muthoot Pappachan Group has raised up to ₹165 crores through the issue of non-convertible debentures (NCDs). The fund has been raised by issuing NCDs on private placement basis.
The NCDs — which have been rated ‘A- stable’ by CRISIL – implies a high degree of safety regarding timely servicing of financial obligations and low credit risk. The private placements made with an international agency and a national player was issued in 3 transactions and has maturity tenures of 5 and 3 years. The debentures are being listed in Bombay Stock Exchange. The net proceeds of the issue will be used for funding business growth. IFMR Capital is the lead managers to the issue.
Mr Sadaf Sayeed, CEO – Muthoot Microfin said, “This fund will be used to further push our business growth and expansion, we are already one among the fastest growing MFIs in India. The successful execution of these transactions reflects the trust of foreign and local investors on our Company and Muthoot Pappachan Group. The issues were finalised after conducting thorough due diligence of our operations.”