Manappuram Finance to raise $500 million via external commercial borrowings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold loan financier Manappuram Finance Ltd on Friday (April 19) said its Financial Resources and Management Committee has greenlit external commercial borrowings (ECBs) worth $500 million. The decision was made during the committee’s meeting held on April 19, 2024.

“We wish to inform you that the Financial Resources and Management Committee of the Board of Directors of Manappuram Finance Limited at its meeting held on April 19, 2024, has approved the issuance of US$ 500,000,000, in one or more tranches, by way of external commercial borrowings in the form of US Dollar bonds and/ or any other form,” according to a stock exchange filing.

The approved amount will be raised in one or more tranches. The borrowing will be executed in the form of US dollar bonds or any other mode compliant with the relevant guidelines set forth by the Reserve Bank of India.

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For the third quarter, Manappuram Finance reported a 46.2% increase in net profit, reaching ₹575.3 crore compared to ₹393.5 crore in the same period last year. Additionally, the net interest income for Q3 rose 33% to ₹1,452 crore as opposed to ₹1,092 crore in the corresponding period of the previous year.

Manappuram Finance Ltd is a leading non-banking financial company (NBFC) specialising in providing credit services. Catering primarily to individuals from lower income groups, the company focuses on serving communities in rural and semi-urban areas across India. Its key segments comprise gold loans and various other credit instruments, including microfinance solutions.

Shares of Manappuram Finance Ltd ended at ₹189, up by ₹0.050, or 0.026%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow