Edelweiss Financial Services announces Rs 200cr Public Issue of NCDs

Edelweiss Financial Services Limited (EFSL), the parent arm of the Edelweiss Group, on Monday announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of a face value of Rs 1,000 each, amounting to Rs 100 crore, with an option to retain over-subscription up to Rs 100 crore aggregating to a total of Rs 200 crore.

The NCDs offer an effective yield (cumulative) of 9.95 per cent p.a. for 120 months tenure, 9.35 per cent p.a. for 36 months tenure and up to 9.80 per cent p.a. for 60 months tenure.

About 75 per cent of the funds raised through this Issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25 per cent of the amount raised in the Issue, the investment banker said in a statement.

An additional incentive maximum of 0.20 per cent p.a. will be offered for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by the Company.

CARE Ratings Limited has rated the offering “CARE A+; and Brickwork Ratings India Private Limited has rated it as “BWR AA-/Stable.

Equirius Capital Private Limited is the Lead Manager of this NCD issue. The Issue opens on December 23, 2020 and closes on January 15, 2021. The NCDs will be listed on BSE Limited to provide liquidity to the investors.