Muthoot Finance, India’s largest gold loan NBFC, has raised USD 600 million (approximately Rs. 5,500 crores) through a senior secured bond issuance under its USD 4 billion Global Medium Term Note Programme, in compliance with RBI’s External Commercial Borrowing guidelines.
The coupon for the Notes has been set at 5.75% p.a. and is issued with a door-to-door tenor of 4.5 years and an average period of 4 years. Deutsche Bank and Standard Chartered Bank were the Arrangers and Dealers for the issuance. This transaction marked the largest final book achieved by any Indian private sector NBFC in the international bond markets, with high quality real money allocation of 96% of issue, reinforcing Muthoot Finance’s established access to international capital markets.
Through an astute and well-timed execution strategy, the investor engagement exercise generated healthy Indications Of Interests and a strong orderbook, ultimately achieving the tightest spread ever over comparable treasury and lowest coupon in the last five years.
The order book peaked at over USD 2.1 billion with an oversubscription of approximately 3.8x and final participation from over 160 investors across the globe. The bonds were rated Ba1 by Moody’s and BB+ by S&P. The issue was in compliance with Rule 144A and Regulation S under the U.S. Securities Act of 1933.
The funds raised will be used for onward lending and other activities permitted under External Commercial Borrowing guidelines of the Reserve Bank of India.
The Notes are listed on the India International Exchange IFSC Limited (India INX).
Commenting on the fund raise, Mr. George Alexander Muthoot, Managing Director, Muthoot Finance, said: “This successful ECB issuance reinforces the strong confidence global investors continue to place in Muthoot Finance. The competitive pricing achieved reflects the resilience of our business model, prudent risk management, and consistent financial performance. 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, supporting our long-term growth objectives.”
In September 2025, Muthoot Finance raised USD 600 million through a similar bond issuance, followed by an additional USD 150 million raised via a reissue in October 2025, reflecting continued strong access to international debt markets.