Muthoot Capital Services Approves ₹200 Cr NCD Issue

Muthoot Capital Services Limited's Debenture Issue and Allotment Committee has approved the issuance and allotment of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures (NCDs) up to ₹200 Crores on a private placement basis. The NCDs will have a tenure of 36 months, with a coupon rate of 9.25% per annum, payable monthly. The principal will be repaid in a bullet payment at maturity on October 14, 2029. The issue is secured pari passu with existing secured creditors on loan receivables and current assets. A step-up in coupon of up to 25 basis points is applicable for each notch downgrade in rating from 'AA-', with a provision for a decrease upon upgrade, but not below the initial rate. A default interest rate of 2% p.a. applies for delayed payments.