Muthoot Finance’s $450 Million Bond Offering

Khaitan & Co acted as legal adviser to Standard Chartered Bank and Deutsche Bank AG, Singapore Branch, as the Managers.

Muthoot Finance has commenced pricing of its three-year dollar-denominated bonds on Monday with the initial price target on the paper coming in at 6.375%. “The firm could be looking to raise anywhere between $300-450 million. The final price is likely to come down fairly from the initial guidance of 6.375%,” said a source.

S&P Global Ratings has assigned the ‘BB’ long-term issue rating to the proposed issue by Muthoot Finance. Meanwhile, Moody’s Investors Service has assigned a first-time Ba2 corporate family rating (CFR).

Moody’s explained that despite the volatile non-performing loans (NPLs) performance, the underlying credit costs have remained fairly low, at about 0.7% of consolidated gross loans in the past three years.

The Khaitan & Co team was composed by Partner Manisha Shroff (Picture), Rolwine Alva (Principal Associate), Enakshi Jha (Associate) and Akshay Ferdinand (Associate) represented the client on the transaction with assistance from Kratika Parashar (Associate) on closing aspects.

Involved fees earner: Rolwine Alva – Khaitan & Co.; Akshay Ferdinand – Khaitan & Co.; Enakshi Jha – Khaitan & Co.; Kratika Parashar – Khaitan & Co.; Manisha Shroff – Khaitan & Co.;

Law Firms: Khaitan & Co.;

Clients: Deutsche Bank AG; Standard Chartered Bank ;

Author: Michael Patrini