Edelweiss' NBFC arm announces Rs 3000 million public issues of secured redeemable NCDs

The Edelweiss Group's NBFC arm ECL Finance Ltd (ECLF) on Thursday announced the public issue of secured redeemable Non-Convertible Debentures (NCDs) of face value of Rs 1,000 each, aggregating up to Rs 1,500 million (hereinafter referred to as the ‘Base Issue’), with an option to retain over-subscription up to Rs 1,500 million aggregating to a total of Rs 3,000 million (hereinafter referred to as the ‘Tranche I Issue’). The NCDs offer an effective yield of 9.90% p.a. for 24 months tenure, 10.20% p.a. for 39 months tenure, up to 10.42% p.a. for 60 months tenure and 10.42% for 120 months tenure.

Speaking on the decision Deepak Mittal, MD & CEO of ECL Finance, said, “Edelweiss has built a competitive position across businesses including the Credit segment, with a diversified product mix across corporate and retail customers. Our focus will be on maintaining the quality of our loan book.  With the public issue of NCDs we will further diversify our funding sources.” 

CRISIL has rated the offering “AA (Double A)/Stable and CARE has rated it as AA; Positive. 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. The funds raised through this Issue will be used for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and for general corporate purpose. 

Axis Bank Limited and Edelweiss Financial Services Limited are the lead managers for this NCD Issue. The Tranche I Issue opens on 10th May 2019 and closes on 7th June 2019 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.

In compliance with the proviso to Regulation 21A (1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (“Merchant Bankers Regulations”), Edelweiss Financial Services Limited (“EFSL”) will be involved only in marketing of the Issue.