GuarantCo completes third Indian bond market transaction of 2025 with Muthoot Capital

  • Date written
  • November, 2025

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has completed its third Indian capital market transaction in just seven months, with a partial (65 per cent) guarantee for an INR 1.5 billion (c. USD 17 million) listed green bond issuance by Muthoot Capital Services Limited (MCSL), one of India’s leading publicly listed non-bank financial institutions.

GuarantCo completes third Indian bond market transaction of 2025 with Muthoot Capital

The proceeds of the bond will be used by MCSL to provide loans to consumers, primarily from rural and non-metro locations, for the purchase of electric two-wheelers, thereby fostering the growth of the Electric Vehicle (EV) ecosystem beyond India’s metro cities.

GuarantCo’s guarantee enabled a three-notch upgrade to MCSL’s debut green bond to AA+ (CE) by CRISIL, India’s leading rating agency. The bonds have exclusively been listed on the National Stock Exchange (NSE). This transaction will not only help MCSL diversify its funding sources away from commercial banks to include institutional investors but also enables the company to tap into longer-tenor liquidity of six years.

This deal is GuarantCo’s second with MCSL following a loan guarantee in 2024 under the Axis Bank framework, again to support e-mobility financing.

By enabling the growth of the EV sector in India, this transaction will contribute to a reduction of greenhouse gas emissions and local air pollutants, in alignment with the UN’s Sustainable Development Goal 13 – Climate Action. It will also contribute to reducing the adverse per capita impact of cities and communities, aligned with Sustainable Development Goal 11 – Sustainable Cities and Communities.

The transaction is expected to support around 57,000 end users in purchasing an EV, with almost 23,000 expected to be women. These end users are predominantly from rural areas and have historically been underserved. Indeed, 50 per cent are expected to be accessing credit for the first time.

Nishant Kumar, Managing Director, Asia Investments at GuarantCo, and Head of Coverage – Asia at PIDG said:

“We are delighted to be working with Muthoot Capital again and to have further expanded our bond guarantee portfolio in India so soon after our most recent capital markets transaction for KPI Green in September. We truly reaped the benefits of replication to close this transaction in record time. This is testimony to the rapid market transformation taking place, with the mobilisation of private capital flows to help finance sustainable infrastructure in India aligned to the PIDG Strategy 2030.” 

Mathews Markose, CEO of Muthoot Capital, said:

“Our partnership with GuarantCo yet again underscores our commitment to sustainable transport. Together, we’re making electric vehicles more accessible and affordable for India’s masses, driving a cleaner transportation future. We continue to serve India’s everyday consumers with ease of access and affordable financing options, empowering them to switch to eco-friendly transportation”.

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, and Global Affairs Canada plus France through a stand-by facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 7.1 billion of total investment and USD 6.8 billion of private sector investment, giving 44.8 million people improved access to infrastructure and creating around 248,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development. www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and southeast Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency.

 

PIDG offers technical assistance for upstream, early-stage activities and concessional capital; invests in early-stage project development and project and corporate equity through its project development solution, InfraCo; its debt solution EAAIF (the Emerging Africa & Asia Infrastructure Fund) is one of the first and more successful blended debt funds in low-income markets; and its guarantees solution, GuarantCo, provides credit enhancement and local currency solutions to de-risk projects. PIDG also supports a growing portfolio of local credit enhancement facilities, which unlock domestic institutional capital for infrastructure financing.

 

Since 2002, PIDG has supported 258 infrastructure projects to financial close, which provided an estimated 232 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia and Sweden, and Global Affairs Canada. www.pidg.org

About Muthoot Capital

Muthoot Capital Services Limited (MCSL) is the listed entity of Muthoot Pappachan Group. A Non-Banking Financial Company (NBFC) listed on the BSE and NSE, MCSL offers financial solutions (loans on wheels) for individuals including two-wheeler loans, used car loans and used commercial vehicles. MCSL is active in retail financing and caters to the requirements of borrowers both in rural and semi-urban areas. The company’s direct approach helps arrive at solutions that best suit the financial requirements of individuals and small entrepreneurs. The company is currently servicing customers in 20 states and also sources its customers from Muthoot FinCorp branches, which are spread across the entire country.