Mumbai: Edelweiss Financial Services Limited (EFSL), today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of ₹1,000 each, amounting to ₹ 2,000 million (“Base Issue”), with an option to retain over-subscription up to ₹ 2,000 million aggregating to ₹ 4,000 million (“Tranche I Issue”). 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, as amended from time to time (“SEBI NCS Regulations”).
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(s)/Bond(s) previously issued by our Company, and/ or our group company, ECL Finance Limited, Nuvama Wealth & Investment Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited and Nuvama Wealth Finance Limited as the case may be, and/or are equity shareholder(s) of the Company as the case may be, on the deemed date of allotment. 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, January 3, 2023 and closes on Monday, January 23, 2023 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.