Muthoot Finance launches dollar bond after ratings upgrade

Muthoot Finance is issuing a new bond after receiving a ratings upgrade. The bond is worth $400 million and has an initial price set at 98.625, which gives a yield of 6.812%. The upgrade comes from S&P, which recently raised Muthoot’s rating to BB+ with a stable outlook. The bond is part of Muthoot's global medium-term note program and follows regulations that do not require registration with US authorities. The settlement of this bond issue is scheduled for March 26, 2025. S&P also upgraded ratings for several other major Indian non-banking financial companies (NBFCs) as the regulatory environment improves. Along with Muthoot Finance, Shriram Finance and Sammaan Capital also received upgrades. Bajaj Finance’s rating was boosted to BBB with a positive outlook. Despite some expected challenges in its microfinance sector, S&P forecasts that Muthoot Finance will maintain solid asset quality, largely due to its strong position in gold loans. In the first nine months of fiscal 2025, Muthoot Finance reported a 34% increase in its consolidated assets under management, reaching ₹1,11,308 crore.