Muthoot Microfin approves private placement of NCDs to fund operations

Muthoot Microfin Limited's debenture issue and allotment committee approved the private placement of two distinct sets of NCDs on November 27, 2025. The first issuance comprises 150,000 listed, rated, senior, secured, transferable, redeemable NCDs, each with a face value of ₹10,000, totaling an aggregate nominal value of ₹150,00,00,000. These are divided into two series of 75,000 NCDs each, with Series A maturing in 24 months and Series B in 23 months, both offering a 9.70% coupon paid monthly.

The second issuance consists of 30,000 secured, rated, listed, redeemable, taxable NCDs, each with a face value of ₹1,00,000, accumulating to an aggregate nominal value of ₹300,00,00,000. These are split into Tranche I and Tranche II, each totaling ₹150,00,00,000. Tranche I features Series I (24-month tenure) and Series II (36-month tenure), while Tranche II includes Series I (23-month tenure) and Series II (35-month tenure). Coupon rates vary between 9.85% and 9.95%, also payable monthly.

All NCDs from the first issuance will be secured by a first-ranking exclusive charge of 1.05x over receivables, while the second issuance will be secured by an exclusive charge via a deed of hypothecation over specific asset portfolio of receivables with a security cover of 1.05x. Both sets of NCDs are proposed to be listed on BSE Limited.