Muthoot Finance board approves USD 450 mn fund-raise

Muthoot Finance on Thursday said its board has approved raising USD 450 million through bonds in overseas markets under the USD 2 billion capital-raise plan. The bonds will be listed on the London Stock Exchange's International Securities Market, the company said.

The finance committee of the board of directors of the company on Thursday approved the issuance, allotment and settlement of USD 450 million 6.125 percent senior secured notes due 2022 under the USD 2 billion global medium-term note program, Muthoot Finance said in a regulatory filing. Earlier this month, the gold loan financier had informed about its proposal to raise USD 2 billion (around Rs 14,200 crore) from the foreign markets to fund its business growth.

The establishment of the Global Medium Term Programme is only an enabling step and presently, no instruments are being issued by the company, it had said. Muthoot Finance shares closed 0.14 percent up at Rs 707.40 on BSE.