Muthoot Finance Raises $600M in Global Bond Deal

India's Leading Gold Loan NBFC Secures Funds for Expansion

Muthoot Finance, India's largest gold loan non-banking financial company (NBFC), has successfully raised $600 million through an international bond issuance under its External Commercial Borrowing (ECB) programme. This marks the final drawdown in the company's $2 billion Global Medium-Term Note (GMTN) Programme, bringing the total raised to the full targeted amount since May 2024.

The bonds were priced at a coupon rate of 6.375%, with a door-to-door tenor of 4.5 years and a weighted average life of 4 years. They carry strong credit ratings of BB+ from S&P Global and Ba1 from Moody's. This issuance is notable as the first since the company's credit rating upgrades by both agencies in March and April 2025.

Strong Global Investor Demand

The bond sale attracted robust international participation, reflecting confidence in Muthoot Finance's growth strategy and fundamentals. Investor breakdown included:

• 49% from the United States

• 36% from Asia

• 15% from Europe, Middle East, and Africa (EMEA)

By investor type, 91% came from fund and asset managers, with the remainder from private banks, insurance companies, and others. The issuance was managed by Deutsche Bank and Standard Chartered as joint global coordinators and bookrunners.

Boosting Lending and Growth

Proceeds from the bond sale will support Muthoot Finance's core lending activities, enabling the company to extend more credit to customers across India. As the market leader in gold loan, the NBFC aims to scale operations, expand its branch network, and contribute to financial inclusion.

George Alexander Muthoot, Managing Director of Muthoot Finance, stated: “This issuance is part of our ongoing efforts to diversify funding sources and further strengthen our international fundraising profile. With the continued support of our partners and investors, we remain well-positioned to scale our lending activities in the gold loan sector and contribute meaningfully to the country’s growth story.”

Market Reaction and Outlook

The announcement positively impacted Muthoot Finance's stock, which hit a 52-week high following the news. The successful raise underscores the company's improving financial profile and investor appeal in global markets.

This strategic funding move positions Muthoot Finance for continued expansion in India's growing gold loan sector amid strong demand for secured credit. Reference URL: https://www.techinasia.com/news/indian-firm-muthoot-finance-raises-600m-via-digital-bond-sale