India’s Muthoot Finance has accepted offers worth $650 million for US dollar-denominated bonds maturing in three years and nine months, three bankers said on Wednesday.
The company set a coupon of 7.1250%, lower than its initial forecast of 7.3750%, due to strong investor demand and received offers worth $1.8 billion, said bankers, declining to be named because they are not authorized to speak to the media.
“The overwhelmingly positive response from investors has been very encouraging and reaffirms investor confidence in our robust business model and financial stability,” said George Alexander Muthoot, Managing Director of Muthoot Finance.
The non-bank finance company will use the proceeds of the issue for subsequent lending and other activities permitted under the external commercial borrowing guidelines.
Deutsche Bank and Standard Chartered are joint global coordinators of this dollar bond offering, as well as joint bookrunners with DBS Bank and SMBC Nikko.
The bonds are expected to be rated “Ba2” by Moody’s Investor Service and “BB” by Fitch Ratings and S&P.
Other Indian non-bank lenders, such as Manappuram Finance and state-owned REC, are also looking to raise funds through a dollar bond issue over the coming days.
