Commentary & Deal Flow

Muthoot Finance Limited (MUTHIN), exp issue ratings Ba1/BB+ (issuer ratings Ba1/BB+/BB+ (s/s/s)), US$600m 144A/Reg S (Cat 1) sr secured notes due 3/2/30. Tenor: 4.5 years door-to-door; 4 years WAL. Amortization Schedule: Months: 42 (20%), 45 (20%), 48 (20%), 51 (20%), 54 (20%). Joint Global Coordinators and Joint Bookrunners: DB (B&D) / Stan Chart. Coupon: Fixed, semi-annual, 30/360. Security: First ranking pari passu charge (by way of hypothecation) over all current assets, book-debts, loans and advances, receivables, including gold loan receivables, both present and future (the “Receivables”) and all benefits, rights, title, interest, claims and demands whatsoever of the Issuer in, to or in respect of all the aforesaid amounts, both present and future, provided that the Collateral shall not include any property, assets and/or receivables of the Issuer from the Collateral designated as Excluded Collateral. Change of Control: “Change of Control” occurs when: the Promoter Group collectively no longer holds Control of the Issuer; the Promoter Group collectively, directly or indirectly, no longer holds at least 50% of the voting rights of the issued share capital of the Issuer; or any other Person (acting alone or in concert with any other parties, but other than a Person controlled by the Promoter Group) holds Control or holds, directly or indirectly, a greater percentage of the voting rights of the issued share capital of the Issuer than the Promoter Group. “Change of Control Triggering Event” means both a Change of Control and a Rating Decline. “Promoter Group” shall have the meaning ascribed to the term under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Maintenance Covenants: Including but not limited to: Capital Adequacy Ratio: To be maintained at a level that complies with the RBI requirements in effect from time to time. Security Coverage Ratio greater than/equal to 1.0x (reviewed on a quarterly and annual basis) ; Minimum Security Coverage Ratio shall be calculated on Collateral excluding the portion classified as NPAs or Stage 3 assets. Clearing: DTC, Euroclear and/or Clearstream. Terms: NSE IX Listing, US$200k/US$1k denominations, English Law. UOP: The proceeds from each issue of Notes will be applied by the Issuer for permitted purpose including onward lending, in accordance with the approvals granted by the RBI from time to time in this relation and in accordance with the ECB Guidelines and other applicable law. Pricing 8/26. Settle 9/2 (T+4).

IPTs: 6.625% area.
FINAL PRICE GUIDANCE: 6.375%#.

PRICED: $600m 6.375% 3/2/30 99.996 6.375%.