Gold loan company, Muthoot Finance Ltd, will launch another NCD (Non Convertible Debenture) issue on March 2, 2012.
Mr George Alexander Muthoot, Managing Director, Muthoot Finance Ltd said, ''Our company will look at mobilising Rs. 500 crore primarily from retail investors, including a green shoe option of Rs. 250 crore. The NCDs are to be listed at the BSE (Bombay Stock Exchange)"
This will be 3rd NCD issue by Muthoot Finance Ltd this fiscal, 2011-12
The first one was in August last year (2011) when the company mobilised Rs. 690 crore at a coupon of 12%. Muthoot Finance , through the second NCD issue in January this year (2012), raised Rs. 475 crore at a coupon of 13 to13.25%.
In the second NCD, more than 50% of the money came in the 3 year & 5 year tenor NCDs, which carried a coupon of 13 to13.25%. More than 50% of the investors were retail investors including many from North and Western regions, where the company is not that well known.
Mr Muthoot also said. “We continue to focus on NCDs as we want to have diversified funding and not entirely rely on banks and mutual funds. Not relying on a single source is always better. We need funding as our loan book has grown by Rs. 8,000-9,000 crore this year,”
The third NCD issue will have 4 variants that is 2 years,3 years, 5 years and five and a half years. The company is likely to raise five and a half year money at 13.25%. The actual coupon rates for the NCD issue will be decided on February 29, 2012
Muthoot Finance is going ahead with the proposed NCD at coupon of 13 to 13.25%, despite wide expectations that interest rates will start softening post March.
Mr George Alexander Muthoot, Managing Director, Muthoot Finance Ltd said, ''Our company will look at mobilising Rs. 500 crore primarily from retail investors, including a green shoe option of Rs. 250 crore. The NCDs are to be listed at the BSE (Bombay Stock Exchange)"
This will be 3rd NCD issue by Muthoot Finance Ltd this fiscal, 2011-12
The first one was in August last year (2011) when the company mobilised Rs. 690 crore at a coupon of 12%. Muthoot Finance , through the second NCD issue in January this year (2012), raised Rs. 475 crore at a coupon of 13 to13.25%.
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| Mr. George Alexander Muthoot, MD |
In the second NCD, more than 50% of the money came in the 3 year & 5 year tenor NCDs, which carried a coupon of 13 to13.25%. More than 50% of the investors were retail investors including many from North and Western regions, where the company is not that well known.
Mr Muthoot also said. “We continue to focus on NCDs as we want to have diversified funding and not entirely rely on banks and mutual funds. Not relying on a single source is always better. We need funding as our loan book has grown by Rs. 8,000-9,000 crore this year,”
The third NCD issue will have 4 variants that is 2 years,3 years, 5 years and five and a half years. The company is likely to raise five and a half year money at 13.25%. The actual coupon rates for the NCD issue will be decided on February 29, 2012
Muthoot Finance is going ahead with the proposed NCD at coupon of 13 to 13.25%, despite wide expectations that interest rates will start softening post March.
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