Muthoot Finance raises $600 mn from international bond markets; stock hits 52-week high

Shares of Muthoot Finance touched a fresh 52-week high on Monday after the country’s largest gold loan NBFC raised funds from the international bond market. The gold loan provider has raised $600 million through an external commercial borrowing (ECB) issuance.

According to the company, the funds will be deployed for lending activities, enabling Muthoot Finance to provide additional credit to customers across India.

Boosted by the development, shares of Muthoot Finance rose as much as 1.1% to attain a new 52-week high of ₹2,958.80 on the BSE, while its market cap increased to ₹1.17 lakh crore. The NBFC stock has risen 69% from its 52-week low of ₹1,751.50 touched on November 14, 2024.

Muthoot Finance shares have risen 46% in the past one year, 27% in six months, and 6% in a month. In the calendar year 2025, the counter has gained 32.5%.

The company said the fundraise marks the fifth tranche under the $2 billion Global Medium-Term Note Programme since May 2024, bringing the cumulative amount raised to $2 billion. The issuance follows recent global rating upgrades by S&P Global in March 2025 and Moody’s in April 2025.

“The issuance attracted strong global participation, with 36% of the funds coming from investors in Asia, 15% from EMEA, and 49% from the US. By investor type, 91% of the subscription came from fund and asset managers, 4% from private banks and banks, 4% from insurance companies, and the remaining 1% from other investors,” Muthoot Finance said in a release.

The release noted that the fundraise has been priced at 6.375%, with a door-to-door tenor of 4.5 years and a weighted average life of 4 years. The notes are rated BB+ by S&P and Ba1 by Moody’s.

“The successful ECB highlights our robust growth strategy and governance practices and marks another step in our expansion journey. This issuance is part of our ongoing efforts to diversify funding sources and further strengthen our international fundraising profile,” said George Alexander Muthoot, Managing Director, Muthoot Finance.

“With the continued support of our partners and investors, we remain well-positioned to scale our lending activities in the gold loan sector, expand our presence across India, and contribute meaningfully to the country’s growth story,” he added.

The bond issuance was managed by Deutsche Bank and Standard Chartered as joint global coordinators and bookrunners.

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