Get All Access for $5/mo

Muthoot Microfin Raises INR 75 Cr Via Market-Linked Debentures Muthoot Microfin is present in 17 states with a network of 773 branches. With around 1.8 million active borrowers, the company works towards uplifting women entrepreneurs based in rural parts of the country

By Prabhjeet Bhatla

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Unsplash

Muthoot Microfin Limited, the microfinance arm of Trivandrum-based Muthoot Pappachan Group, on Thursday declared that the company has raised INR 75 crore through the issuance of market-linked debentures (MLD) in June. The market-linked debentures, which were issued on a private placement basis, are slated to mature in 18 months.

"The idea is to diversify the sources of funding for Muthoot Microfin, we plan to raise INR 500-600 crore this FY through MLD. These funds will be utilized for disbursements to microfinance clients. We are expecting a rebound in the rural economy post the pandemic woes and we are well equipped to service the sector with ample funds, operational reach, and adequate resources. We also plan to close our $50 million equity fundraising very soon," Muthoot Microfin Limited chief executive officer Sadaf Sayeed, while talking about the road ahead with regard to the market-linked debentures.

Notably, the Principal Protected Market Linked Debentures (PP-MLD) are listed in the Bombay Stock Exchange and rated A/Stable by the Credit Rating Information Services of India Limited (CRISIL). The rating implies a high degree of safety regarding timely servicing of financial obligations and low credit risk of the instrument.

According to Muthoot Microfin Limited chief financial officer Praveen T, "We are quite comfortable with our liquidity position, we are expanding the sources of funds beyond traditional venues like Term Loans or Direct assignments. We have issued several NCDs in the past; with MLDs, we were able to raise funds at very competitive rates. Current MLD is listed at 10.25 per cent and going forward we expect this cost to go down by 50 – 75 bps"

Muthoot Microfin Limited is present in 17 states with a network of 773 branches. With around 1.8 million active borrowers, the company works towards uplifting women entrepreneurs based in rural parts of the country.

Prabhjeet Bhatla

Former Staff

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

Growing a Business

How to Spot Trends and Anticipate Market Shifts Before Your Competition

Discover how to identify disruptive trends before your competitors by mastering the art of anticipating market shifts. Learn strategies for staying ahead and gaining a competitive edge in business.

Leadership

As a Leader, Take These 5 Steps to Bridge the Gap Between Innovation and Execution

Companies that want to turn ideas into action must align their people and listen to their customers.

Growing a Business

Why Business Owners Should Streamline Their Operations Now for Success in 2025

As the holiday season and year-end approach, business owners face heightened operational demands, from inventory management to spend control. By streamlining these processes and partnering with flexible suppliers, businesses can maintain efficiency, meet customer needs and focus on growth while navigating this busy period.