Muthoot Finance Raises USD 600 Million from International Bond Markets

KOCHI:

Muthoot Finance, India’s largest gold loan NBFC, has raised USD 600 million from international bond market through an External Commercial Borrowing (ECB) issuance. The funds will be deployed for lending activities, enabling Muthoot Finance to provide additional credit to customers across India.

The issuance attracted strong global participation, with 36% of the funds coming from investors in Asia, 15% from EMEA, and 49% from the US. By investor type, 91% of the subscription came from fund and asset managers, 4% from private banks and banks, 4% from insurance companies, and the remaining 1% from other investors.

The fundraise, under USD2billion Global Medium-Term Note (GMTN) Programme, has been priced at 6.375% with a door-to-door tenor of 4.5 years and a weighted average life of 4 years. The notes are rated BB+ by S&P and Ba1 by Moody’s. This marks the fifth drawdown under the GMTN programme since May 2024, bringing the total funds raised via this route to USD 2 billion. This is the first issuance of Muthoot Finance following its rating upgrades by global credit rating agencies S&P Global in March 2025 and Moody’s in April 2025.

George Alexander Muthoot, Managing Director, Muthoot Finance, said: “The successful ECB highlights our robust growth strategy, governance practices and marks another step in our expansion journey. This issuance is part of our ongoing efforts to diversify funding sources and further strengthen our international fund raising profile. With the continued support of our partners and investors, we remain well-positioned to scale our lending activities in the gold loan sector, expand our presence across India, and contribute meaningfully to the country’s growth story.”

The issuance was managed by Deutsche Bank and Standard Chartered as Joint Global Coordinators and Bookrunners.