Jobaaj Stories
Muthoot Finance, a prominent gold loan lender in India, has announced its plan to prepay $550 million of external commercial borrowings. It was earlier scheduled to mature on September 02, 2023.
Under the Global Medium Term Notes Programme, they raised money in stages in 2020 for a three-year term. The corporation has thus chosen to prepay the borrowings early. Further, reducing the company's interest burden and improving liquidity.
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Last month, Muthoot Finance launched the fifth tranche of its secured non-convertible debentures. The base issue was of the size of Rs 100 crore, and an option to keep an oversubscription up to Rs 400 crore. With a network of over 5,500 branches across India, the company's gold loan portfolio has been growing.
Repayment will improve Muthoot Finance's standing in the industry. Further, supporting its expansion goals. It also underscores the company's commitment to responsible borrowing practices, and financial prudence.
To prepay its external commercial borrowings is a positive development by Muthoot Finance. It will reflect the company's strong financial position and efficient debt management capabilities.
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