Muthoot Finance Ltd, a gold financing company in India on Friday announced its 17th series of public issue of Non-convertible Redeemable Debentures (NCD).
The company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs) of face value of Rs. 1,000 each, aggregating up to Rs. 1,950 crores and Unsecured Redeemable Non-Convertible Debentures (Unsecured NCDs) of face value of Rs. 1,000 each, aggregating up to Rs. 50 crores, totalling upto Rs. 2000 crores (Shelf Limit).
The Tranche issue is with a base issue size of Rs. 200 crores with an option to retain oversubscription up to a shelf limit of Rs. 2,000 crores.
The issue opens on April 11, 2017 and closes on May 10, 2017, with an option to close earlier and/or extend up to a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two Credit Rating Agencies - CRISIL and ICRA. Both agencies have awarded long term debt rating of 'AA/Stable' for the debentures offered under the issue. The rating scale denotes high degree of safety regarding timely servicing of financial obligations and very low credit risk.
"The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60 percent of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments," said George Alexander, MD, Muthoot Finance.
The NCDs are proposed to be listed on BSE Limited. There are ten investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from eight to nine percent
The investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96 months with an effective yield of 9.06 percent per annum.
The funds raised through this issue will be utilised primarily for lending activities of the Company.
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