India's Muthoot plans up to Rs. 5 billion issue of debentures

By Jennifer Chiou

New York, Feb. 29 - Muthoot Finance Ltd. announced plans for a public issue of up to Rs. 5 billion of secured redeemable non-convertible debentures.

The subscription period will open on March 2, and closing is anticipated for March 17.

The lead managers are Icici Securities Ltd., HDFC Bank Ltd., JM Financial Consultants Pvt. Ltd., Karvy Investor Services Ltd., RR Investors Capital Services Ltd. and Yes Bank Ltd.

The issue will have several investment options and an effective yield of up to 13.43%.

The options include the following:

• Debentures due in 24 months with an effective yield of 13%;

• Debentures due in 36 months with an effective yield of 13.25%;

• Debentures due in 60 months with an effective yield of 13.25%; and

• Debentures due in 66 months with an effective yield of 13.43%. The investment amount will double in 5.5 years.

Proceeds will be used for the repayment of existing liabilities and for working capital.

Ernakulam, India-based Muthoot is a non-banking finance company that provides personal and business loans secured by gold jewelry.

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