Muthoot Microfin has raised $38 million in external commercial borrowing from Union Bank of India (DIFC branch), Bank of Bahrain and Kuwait, Bank of India (DIFC branch, Dubai), Mega International Commercial Bank Co (Labuan Branch).
The lender raised the fund with three years and three months maturity at 9.58% blended cost, benchmarked to a three-month term SOFR (Secured Overnight Financing Rate) with a margin of 2.85%.
The non-banking finance company-microfinance institution (NBFC-MFI) said that the ECB was over and above its $75 million raised in March as it received additional interest from investors. The lender has expanded the greenshoe option of $25 million to $38 million, seeing higher interest.
An amendment agreement was executed to extend the greenshoe option. The interest rate structure for the additional borrowing remains the same with the initial $75 million, as it is part of the same deal, the company said.
“We are delighted to receive an overwhelming response to our ECB paper in the international market. The increased greenshoe amount is a testament to the faith and trust that global financial institutions have in our business and the social impact it is making,” Muthoot Microfin chief executive Sadaf Sayeed said.
The initial $75 million raised in March was solely arranged by Standard Chartered Bank.
Muthoot Microfin, a part of Muthoot Pappachan Group, had Rs 12,193 crore of gross loan portfolio at the end of March while it served 3.35 million active customers through 1,508 branches spread across the country.
