India's Muthoot Finance has successfully accepted bids worth $650 million for US dollar-denominated bonds maturing in three years and nine months. The company received bids worth $1.8 billion, exceeding their initial target.
Muthoot Finance set a coupon of 7.1250 per cent, lower than their initial guidance of 7.3750 per cent, due to strong investor demand. The proceeds from the bond issue will be used for onward lending and other activities permitted under external commercial borrowing guidelines.
Deutsche Bank and Standard Chartered acted as joint global coordinators and joint bookrunners for the bond issue, alongside 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.
This successful bond issuance demonstrates investor confidence in Muthoot Finance's robust business model and financial stability. The company plans to utilize the proceeds for onward lending and other permitted activities.