Edelweiss Finance’s NCD issue to offer up to 10.45% per annum


MUMBAI: Edelweiss Finance and Investments (EFIL) on Wednesday announced the public issue of secured redeemable non-convertible debentures (NCDs) of a face value of Rs 1,000 each amounting to Rs 125 crore (base issue) with an option to retain oversubscription up to Rs 125 crore, aggregating to a total of Rs 250 crore.

The NCDs offer an effective yield up to 10.25 per cent per annum plus 0.20 per cent additional interest for tenures of 18 months, 36 months, 60 months and 120 months with an interest option: monthly, annual and cumulative.

The funds raised will be primarily used for onward lending and repayment of interest and principal of the company’s existing borrowings and for general corporate purposes.

CrisilNSE 1.23 % and Care have rated the offering AA-minus with a stable outlook. “These ratings indicate that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk,” EFIL said in a statement.

IDBI Capital Markets and Securities along with Edelweiss Financial Services Ltd (EFSL) are lead managers for the issue which opens on January 23 and closes on January 31 with an option of early closure. The NCDs will be listed on BSE Ltd to provide liquidity to the investors.

EFIL is a 100 per cent subsidiary of EFSL. The company’s product portfolio currently comprises of granting loans against securities, ESOP finance, margin trade financing and IPO financing.