MoneyBoxx Bonds: Features, ISIN, Yield (YTM), Rating & Key Risks Explained

Introduction

MoneyBoxx Finance Limited is an Indian non-banking financial company (NBFC) that provides innovative financing solutions, particularly for small and medium enterprises (SMEs) and individuals. To raise capital for its operations, MoneyBoxx Finance offers bonds that are accessible to institutional and retail investors.

This article explains MoneyBoxx Bonds, detailing their structure, key features, yield, credit rating, and the risks involved. By exploring these elements, investors can gain a clearer understanding of this investment product.

What Are MoneyBoxx Bonds?

MoneyBoxx Bonds are debt instruments issued by MoneyBoxx Finance Limited to raise capital. These are senior secured bonds with fixed interest payments. MoneyBoxx bonds are typically listed on NSE and BSE, allowing investors to buy and sell them on the stock exchanges.

The bonds offer a fixed coupon rate and are backed by secured collateral, providing a layer of protection for bondholders in case the issuer faces financial distress.

Key Features of MoneyBoxx Bonds

Here are the key features of MoneyBoxx Bonds:

• Issuer: MoneyBoxx Finance Limited

• ISIN: INE296Q07142

• Bond Type: Senior Secured

• Coupon Rate: 10.25% (fixed)

• Interest Payout: Monthly

• Maturity Date: 16 October 2027

• Yield to Maturity (YTM): 11.65%

• Face Value: ₹10,000 per bond

• Clean Price: ₹98.79

• Dirty Price: ₹98.93

• Credit Rating: CRISIL BBB (Stable)

• Collateral Coverage: 1.10x

• Tenure: 1 year 8 months 26 days (from 16 Oct 2025)

• Minimum Investment Amount: ₹9,894

These features are critical for investors to evaluate the bond's risk-return profile.

MoneyBoxx Finance Bond Structure

The bond structure is designed to attract investors while providing the issuer with the flexibility to raise funds for its lending operations.

• Senior Secured Bond: These bonds are backed by collateral, ensuring that bondholders have priority over unsecured creditors in case of financial trouble.

• Coupon Rate: The fixed coupon rate of 10.25% ensures that investors receive regular income from the bond.

• Secured Collateral: The bonds are secured by assets, with a collateral coverage of 1.10x, meaning the value of assets securing the bonds exceeds the bond value by 10%.

• Monthly Payouts: The bond pays interest on a monthly basis, providing regular income to investors.

Yield to Maturity (YTM) and Coupon Rate

Yield to Maturity (YTM)

YTM is the total return an investor can expect to earn if the bond is held until maturity, assuming that all interest payments are made as scheduled. For MoneyBoxx bonds, the YTM is 11.65%, which reflects both the coupon payments and the bond’s price in the secondary market.

Coupon Rate

The coupon rate of 10.25% means that investors will receive an annual return of 10.25% on the face value of the bond, paid out monthly.

MoneyBoxx Credit Rating and Collateral Structure

Credit Rating

MoneyBoxx Bonds are rated BBB (Stable) by CRISIL Ratings. A BBB rating indicates that the bonds have an adequate capacity to meet financial commitments, but may be more vulnerable to adverse economic or financial conditions compared to higher-rated instruments.

Collateral Structure

The bonds are backed by secured collateral with a 1.10x coverage ratio. This means that the assets pledged as collateral are valued at 10% more than the total value of the bonds issued, providing additional security to investors.

MoneyBoxx Bond Issuer Background

MoneyBoxx Finance Limited is an NBFC that focuses on providing financing solutions for small businesses and individuals, particularly in underserved sectors. The company’s assets under management (AUM) stood at ₹927 crore in FY 25, with a CRAR (Capital to Risk-Weighted Assets Ratio) of 29.25%, indicating healthy capitalisation.

The company’s established partnerships with institutional lenders such as SBI, HDFC Bank, and Kotak Mahindra Bank further strengthens its financial standing.

Market Overview and Financial Performance

• Market Capitalisation: ₹639.02 crore

• Profit After Tax (PAT): ₹1.25 crore

These figures provide insight into the company’s size, growth potential, and profitability. MoneyBoxx’s relatively small market cap and profits suggest that while the company is growing, it still operates in a niche market.

Key Risks of MoneyBoxx Bonds

Investors should be aware of several risks when considering MoneyBoxx bonds:

• Credit Risk: The issuer’s ability to meet interest and principal payments could be affected by economic conditions or internal financial issues.

• Interest Rate Risk: Changes in market interest rates could affect the market price of the bonds.

• Liquidity Risk: These bonds may not be as liquid as government securities or highly traded corporate bonds.

• Operational Risk: As with all financial institutions, the company’s internal operations, risk management, and decision-making processes could affect its financial health.

• Collateral Risk: The value of the assets securing the bonds may fluctuate, especially if the company’s financial situation deteriorates.

Common Misconceptions About MoneyBoxx Bonds

Some common misconceptions include:

“All bonds from the Muthoot Group are the same.”

Muthoot Finance and MoneyBoxx are separate entities with distinct operations and financial profiles.

“A BBB rating guarantees low risk.”

While BBB ratings suggest that the bonds are investment-grade, they are not risk-free. Ratings are an opinion, not a guarantee.

How Investors Typically Evaluate MoneyBoxx Bonds

Investors typically evaluate these bonds by considering:

• Credit Rating: CRISIL BBB rating and its implications for bondholder safety.

• Yield to Maturity (YTM): Reflecting the return on investment over time, factoring in bond price and coupon rate.

• Collateral: Understanding the 1.10x collateral coverage to assess the risk of the bond.

• Issuer’s Financial Performance: AUM and market cap provide insight into the company’s stability and growth.

Conclusion

MoneyBoxx Finance Bonds provide a senior secured debt option for investors looking for fixed-income products with relatively higher yields. With a 10.25% coupon rate and an 11.65% YTM, the bonds offer regular monthly payouts and are secured by collateral.

However, the credit risk, interest rate risk, and collateral risk must be considered before investing. Understanding the issuer’s background, credit rating, and bond structure allows investors to make informed decisions.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.