Edelweiss Financial Services to raise ₹400 crores via secured redeemable NCDs

Edelweiss Financial Services Limited today announced the public issue of its secured redeemable non-convertible debentures of the face value of ₹1,000 each, amounting to ₹200 crore, with an option to retain over-subscription up to ₹ 200 crore to ₹ 400 crore.

There are ten series of NCDs carrying fixed coupon and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 8.99% to 10.46%*.

At least 75% 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% of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Issue And Listing Of Non-Convertible Securities) Regulations, 2021.

An additional incentive of 0.20% p.a. will be offered for all category of investors in the proposed tranche I issue, who are also holders of NCD/bonds previously issued by the company, or group company, ECL Finance Limited, Nuvama Wealth & Investment Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited and Nuvama Wealth Finance Limited.

The NCDs proposed to be issued under this tranche I Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” and “ACUITE AA-/Negative” (pronounced as ACUITE double A minus).

Equirus Capital Private Limited is the Lead Manager of this NCD issue. The tranche I Issue opens on Tuesday and closes on 23 January with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.