MANAPPURAM FINANCE LTD raises US$ 300 million in 3-year bonds
Maiden international bond issue of the company sees overwhelming
investor interest
Chennai, 7th January 2020: Manappuram Finance Ltd., one of India’s
leading NBFCs predominantly focused on gold loans, has successfully
raised US$ 300 million by way of senior secured fixed rate notes
issuance for a 3-year tenor. The issue was placed with a coupon of
5.90%.
This is the first issuance by the Company in the global bond market,
tapping investors in Asia and Europe, Middle East and Africa (EMEA).
The proceeds of the issue will be used for onward lending and other
activities as permitted by the RBI and extant guidelines for external
commercial borrowings.
Earlier, the company had engaged extensively with investors during a
roadshow across Singapore, Hong Kong, and London. Buoyed by strong
investor interest, the issue was launched with an initial price
guidance of about 6.25%. However, following the exceptional interest
shown by over a hundred high-quality investors, the final order book
exceeded US$
1.15 billion and the company was able to tighten the pricing to 5.90%.
The firm offers were allocated mostly to asset and fund managers
(87%), with private bankers (8%) and banks (5%) taking up the rest.
Geographically, 76% was allocated to accounts in Asia and 24% to
accounts in EMEA. The bonds will list on International Securities
Market of the Singapore Exchange Securities Trading Limited
(“SGX-ST”).
Manappuram Finance Ltd. had obtained long term foreign-currency and
local currency issuer credit rating of ‘BB-’ with ‘Stable’ outlook
from Fitch Ratings and long term issuer credit rating of ‘BB-‘ with
‘Stable’ outlook from S&P Global Ratings.
In a statement released to the media, V.P. Nandakumar, MD&CEO, said
“The overwhelming response from international investors and the
attractive pricing in times of global uncertainty, is once again a
reaffirmation of the fundamental strength of our business model. The
success of the issue and its attractive pricing enables us to further
diversify our funding sources. We look forward to a sustainable and
mutually beneficial long-term partnership with our global bond
investors.”
UBS AG Singapore Branch (“UBS”) acted as Global Coordinator. UBS and
Barclays Bank PLC acted as Joint Book Runner for the issue.
About Manappuram Finance Limited (MAFIL)
Manappuram Finance Ltd. is one of India’s leading gold loans NBFCs
engaged in providing finance against used household gold ornaments.
Incorporated in 1992, the company has been promoted by Mr. V.P.
Nandakumar (current MD & CEO) whose family has been involved in gold
loans since 1949. It is headquartered at Valapad in the Thrissur
District of Kerala. The company went public in August 1995 and its
shares are listed on the BSE and NSE stock exchanges.
As of September 30, 2019, the Company had 4,490 branches across 28
states and UTs with Assets under management (AUM) of ₹22,676.93 crore.
The company’s net worth stood at ₹5,061.80 crore.
