Muthoot Microfin raises $75 million via external commercial borrowing

Muthoot Microfin on Thursday said it has raised USD 75 million by way of external commercial borrowing for on-lending and financing of social loans.

Standard Chartered Bank, Doha Bank, RakBank (National Bank of Ras Al Khaimah), Union Bank of India (UK) Ltd, and Canara Bank, GIFT City participated in the funding, the microfinance firm said in a regulatory filing.

"Muthoot Microfin has announced a syndicated social term loan of USD 75 million in the form of an ECB (External Commercial Borrowing)," it said, adding that the funds raised will be utilised for on-lending and financing of eligible social loans.

The loan has been tied up for a 3-year and 3-month tenor and benchmarked to a 3-month Term SOFR (Secured Overnight Financing Rate) with a margin of 2.85 per cent, which will be serviced at a quarterly frequency.

Muthoot Microfin CEO Sadaf Sayeed said, "This strategic move not only opens avenues for international partnerships but also introduces the MFI sector to diverse international banking entities across different geographies".

Shares of Muthoot Microfin closed at Rs 199.80 on the BSE, down 1.43 per cent over the previous close.