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Muthoot Finance Ltd has announced its 33rd series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each (“Secured NCDs”). The Issue is with a base issue size of ? 100 crores with an option to retain oversubscription up to ? 900 crores aggregating up to tranche limit of  ? 1000 crores (“Issue”). The Issue opens on January 08, 2024 and closes on January 19, 2024 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee.

The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. This rating of the Secured NCDs by ICRA indicates “high degree of safety regarding timely servicing of financial obligations”. The Company is also rated by CRISIL Ratings with AA+ with ‘Stable’ outlook.

The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis.

There are 7 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rate ranging from 8.75% p.a to 9% p.a for Individual Investors and Corporate Investors.

Mr.George Alexander Muthoot , Managing Director, Muthoot Finance Ltd, said “Our 33rd NCD issue is open for subscription, and allows investors to get the twin advantages of better rating as well as an attractive interest rate ranging 8.75% to 9% p.a. Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, is a better investment option. As part of this issue, our retail individual investors will receive 0.5% p.a. more than the interest rate applicable to institutions and corporates. We are expecting a good response for the issue.”

95% of the issue is allocated for companies and individual investors who will be getting 0.50% p.a more interest rate than that applicable for institutions . Since RBI has paused increase in benchmark Repo rate and with the market expectation of a Repo rate cut during the year, investors will get an opportunity to lock-in their investments at higher rate of interest for 3 years and 5 years by subscribing in the current NCD issue. The funds raised through this issue will be utilised primarily for lending activities of the Company.

The Lead Managers to the Issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.

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