Squire Patton Boggs has acted as U.S. special counsel to India’s largest gold finance company, Muthoot Finance Limited, on a US$600 million High Yield Bond issue. The Notes were issued under Muthoot Finance’s US$4 billion Global Medium Term Note (GMTN) Programme.
The transaction was well received by the international markets, pricing at 5.75% which represented a significant tightening from the initial price guidance of 6.125%. The Notes are secured against the company’s current assets, including gold loan receivables, and have a weighted average life of approximately four years. Deutsche Bank and Standard Chartered Bank acted as global coordinators and joint bookrunners for the issuance.
The Squire Patton Boggs team advising Muthoot Finance was led by Corporate partner Philip Lee in Singapore, supported by of counsel, Andhari Sidharta and senior associate, Le Jing Ong.
Philip Lee, who previously assisted Muthoot Finance in the initial establishment of its GMTN Programme as well as all subsequent offshore bond issues of the company, commented:
“We are delighted to have supported Muthoot Finance on this successful high yield issuance. The strong investor appetite and tightened pricing reflect the market’s continued confidence in Muthoot’s robust credit profile and its leading position in the Indian financial services sector. Having been involved with the GMTN Programme since its inception, it is particularly rewarding to see the programme continue to provide the company with efficient access to global capital.”
