Muthoot Capital Services Approves ₹100 Cr NCD Issue

Muthoot Capital Services Limited's Debenture Issue and Allotment Committee has approved the issuance of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures (NCDs) up to ₹100 Crores on a private placement basis. The NCDs will have a tenure of 36 months, a coupon rate of 9.25% per annum payable monthly, and a bullet principal payment at maturity. The issue is proposed to be listed on BSE Limited. The NCDs will be secured pari passu with existing secured creditors on loan receivables and current assets, with a minimum asset coverage ratio of 1.1 times. The company has also outlined provisions for step-up coupon rates in case of rating downgrades and a default interest rate of 2% p.a. over the coupon rate in case of delayed payments.