Manappuram indefinitely postpones key meeting on dollar borrowing

Meeting was scheduled to take place on December 3 (today)

KOCHI: Manappuram Finance has indefinitely postponed the meeting of the Financial Resources and Management Committee scheduled to be held on December 3, 2019 (Tuesday) for finalising the terms of the dollar-based debt programme, including tenure and pricing.

The leading gold loan company had last week informed the market that it was contemplating to undertake the issue of foreign currency denominated bonds under a $750 million euro medium term note (EMTN) programme.

“A meeting of the Financial Resources and Management Committee of the Board of Directors of the company earlier scheduled to take place on December 3, 2019 shall now take place on December 4, 2019 or December 5, 2019 or December 6, 2019 or December 9, 2019 or on a later date subject to market conditions to finalise the pricing, tenure and other terms of Issue,” a Manappuram Finance statement sent to stock markets said.

Earlier, responding to queries from analysts, VP Nandakumar, the MD and CEO of the company, had said the first tranche of the issue, at $300 million will be launched by November end or first week of December. But now as the things stand, the issue may not hit the market before the second week of December.

Nandakumar had also explained that the company would not face and liquidity issue in the immediate future, adding that there was unpredictability about liquidity issues in the industry going forward.

A few weeks ago, the leading gold loan company, Muthoot Finance had also raised $450 million from overseas market as part of a $2 billion external commercial borrowing (ECB) programme.

 

 

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