Muthoot Fincorp launches Fifth Public Issue

Muthoot Fincorp launches Fifth Public Issue of Secured Redeemable Non-Convertible Debentures to Raise ₹ 480 Cr.

Muthoot Fincorp Limited, the flagship company of Muthoot Pappachan Group (popularly known as Muthoot Blue) today announced the launch of 5^th Public Issue of Secured RedeemableNon-ConvertibleDebentures (NCDs) to raise ₹ 250 crore, with an option to retain over subscription up to₹ 230 crore, aggregating to ₹ 480 crore. The funds raised will primarily be usedto augmentthe working capitaland requisite lending.

The company has received board approval to raise NCDs in the aggregate amounts of upto ₹ 900 Cr. The first tranche of the issue, which opened on September 20, 2019 and closed by October 18, 2019 raised Rs.417 Cr. from public.The second tranche of the issue would have the face value of ₹1,000 and a minimum ticket size of ₹ 10,000.There will be 11 schemes, with tenure options of 400 days, 24 months, 38 months and 60 months, offering customers returns with interest rates ranging from 9.36% to 10%.This 5^th public issue of NCDs will open on January 9, 2020 and close by February 4, 2020. The issue has received Credit Rating “CRISIL A/Stable” by CRISIL Limited and “BWR A+/Stable” by Brickwork Rating India Pvt. Ltd.

Commenting on the proposed NCD issue, Mr.Thomas John Muthoot, Chairman -Muthoot Pappachan Group and Managing Director - Muthoot Fincorp Limited, said, “Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet needs of the customers. In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans. On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs.The first tranche of the NCD issue was well received by our investors and we managed to raise Rs 417 Cr. that will be used primarily to augment the working capital and requisite lending. Muthoot Fincorp along with the sister companies of the Group, have lacs of customers actively engaged with us. We are confident about the success of the second tranche of the NCD Issue and hope that this will help fuel further growth and will add more value to all our stakeholders, including investors.”

L&T Finance Limited announces Tranche

L&T Finance Limited announces Tranche I of Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs)

·               Secured NCDs of a face value of Rs.1,000 each

·               The Tranche I Issue includes a Base Issue Size for an amount of Rs. 500 crore (“Base Issue Size”) with an option to retain oversubscription upto Rs. 1,000 crore aggregating up to Rs.1,500 crore (“Tranche I Issue”)

·               The Tranche I Issue is rated as CRISIL AAA / Stable (pronounced as CRISIL triple A with Stable outlook), CARE AAA / Stable (pronounced as CARE triple A with Stable Outlook), IND AAA / Stable (pronounced as IND triple A with Stable outlook).

·               The Tranche I Issue offers effective annualized yield up to 8.64% p.a. on redemption^#

·               The Tranche I Issue opens on December 16, 2019 and closes on December 30, 2019*

·               The Secured NCDs will be listed on BSE and NSE (collectively, “Stock Exchanges”). NSE shall be the Designated Stock Exchange.

 L&T Finance Limited (a wholly owned subsidiary of L&T Finance Holdings Limited) is coming out with a public issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of the face value of Rs. 1,000 each.

The Tranche I Issue aggregates to Rs. 500 crore, with an option to retain over-subscription upto Rs. 1,000 crore, aggregating upto a total of Rs. 1,500 crore. The Tranche I Issue offers various options for subscription with coupon rates ranging from 8.25% - 8.65% (per annum). The Tranche I Issue opens on December 16, 2019 and closes on December 30, 2019, with an option of early closure or extension.

The Secured NCDs proposed to be issued under this Issue have been rated ‘CRISIL AAA (stable) (pronounced as CRISIL triple A with Stable outlook)’, CARE AAA / Stable (pronounced as CARE triple A with Stable outlook) and IND AAA / Stable (pronounced as IND triple A with Stable outlook). The rating of Secured NCDs by CRISIL, CARE and India Ratings indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

These Secured NCDs, bearing a fixed rate of interest, are being offered under six different series. There are four categories of investors defined as: Category I (Institutional Investors) Category II (Non- Institutional Investors), Category III (High Net-worth Individuals) and Category IV (Retail Individual Investors).

The terms of each series of NCDs, offered under Tranche I Issue are set out below:

**Our Company would allot the Series IV NCDs, as specified in the Tranche I Prospectus to all valid Applications, wherein the Applicants have not indicated their choice of the relevant Series of NCDs.

Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, refinancing the existing indebtedness of the Company (payment of the interest and/or repayment /prepayment of principal of borrowings) (up to 75%) - and the rest (up to 25%) for general corporate purpose.

The Secured NCDs offered through the Tranche I Prospectus are proposed to be listed on the BSE & NSE. NSE shall be the Designated Stock Exchange for the Tranche I Issue.

The lead managers to the Issue are Edelweiss Financial Services Limited, A. K. Capital Services Limited, Trust Investment Advisors Private Limited and JM Financial Limited.

IDBI Trusteeship Services Limited is the Debenture Trustee and Link Intime India Private Limited is the registrar to the issue.