Muthoot Finance raises $600 million via international bond markets

Synopsis

Muthoot Finance, India’s largest gold loan NBFC, has raised USD 600 million through an international bond issuance under its External Commercial Borrowing (ECB) programme. The proceeds will fund lending activities, allowing the company to extend more credit across India. The issuance saw strong global participation, highlighting investor confidence in Muthoot Finance’s growth strategy and fundamentals.

Muthoot Finance, India’s largest gold loan non-banking finance company (NBFC), has successfully raised $600 million from international bond markets via an External Commercial Borrowing (ECB) issuance.

The proceeds will be deployed toward lending activities, enabling the company to extend additional credit to customers across India, according to the release.

The issuance witnessed strong global participation, reflecting investor confidence in the company’s fundamentals and growth strategy.

Investor interest was geographically diverse, with 36% from Asia, 15% from EMEA, and 49% from the US. By investor type, fund and asset managers accounted for 91% of the subscription, followed by private banks and banks (4%), insurance companies (4%), and others (1%), the company highlighted.

This fundraise was executed under Muthoot’s $2 billion Global Medium-Term Note (GMTN) Programme. The bonds were priced at 6.375%, with a door-to-door tenor of 4.5 years and a weighted average life of 4 years. The notes carry ratings of BB+ by S&P and Ba1 by Moody’s.

With this latest drawdown – the fifth under the GMTN programme since May 2024 – the company has raised the full USD 2 billion targeted through this route.

Notably, this is Muthoot’s first issuance following rating upgrades by S&P Global (March 2025) and Moody’s (April 2025).

Commenting on the development, George Alexander Muthoot, Managing Director, Muthoot Finance, said: "The successful ECB highlights our robust growth strategy and governance practices, marking another step in our expansion journey. 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, expand our presence across India, and contribute meaningfully to the country’s growth story."

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

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