On Tuesday, Muthoot Finance raised Rs 300 crore through the public issue of bonds. The face value of Rs 1000 each was announced by its 27th series of public issues with redeemable Non-Convertible Debentures (NCDs). The aggregating tranches limit will be Rs 300 crore. On May 25, the public issue opens and closes on 17th June with an option to close on such an earlier date or extend the date as may decide by the board of directors or any NCD committee.

The fund has been raised through public issue, which will be utilised primarily for lending activities. The bonds will have seven investment options with monthly or annual interest payment frequency or ‘on maturity redemption’ payment with coupons ranging from 7.25 – 8 per cent per annum.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, “We have allocated 90 per cent of the issue for retail and high-net-worth individual investors who will be getting 0.50 per cent per annum more than the interest rate applicable for institutions and corporates.”

Moreover, interest rates have been increased by 0.25 per cent per annum in this issue compared to the previous issue. In this issue, investors get the twin advantage of better rating and attractive interest rate, he said.