Muthoot Microfin raises ₹250 Cr via NCDs

has completed the allotment of 2,50,000 secured NCDs of face value ₹10,000 each, raising a total of ₹250 crore. The debentures carry a competitive coupon rate of 9.25% per annum, payable monthly, with a tenure of 24 months. Secured by a first-ranking, exclusive charge over the company's receivables, the transaction leverages Muthoot Microfin's upgraded CRISIL AA-/Stable credit rating to optimize structural borrowing costs. This ₹250 crore debt raise highlights Muthoot Microfin's strong execution capabilities in diversifying its funding base. By issuing structured NCDs backed by a first-ranking, exclusive charge on receivables, the company has offered strong credit comfort to institutional players. Backed by its upgraded CRISIL AA-/Stable rating and a robust 13-fold sequential surge in Q1 FY27 earnings, the company is successfully locking in medium-term funds at a competitive 9.25% rate. This structural optimization of borrowing costs protects interest margins and directly supports its ambitious onward lending targets. Muthoot Microfin’s proactive debt placement is a well-timed move to capture credit demand while fortifying its balance sheet. By leveraging its improved credit profile to secure multi-year funding at 9.25%, the company has successfully reduced funding vulnerabilities. This financial agility positions Muthoot Microfin to sustain its expansion momentum and deliver stable, long-term shareholder returns. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.