Edelweiss Financial Services announces public issue of Secured Redeemable Non-Convertible Debentures (NCDs) to raise Rs 400 crore

Edelweiss Financial Services (EFS), has announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of ₹1,000 each, amounting to Rs 400 crore.

There are eight series of NCDs carrying fixed coupon and having tenure of 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 9.09% to 9.70%. An additinal 20 basis points in interest will be paid to sharesholders and NCD holders of EFS and other subsidiaries on the date of allottment.

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. The NCDs are rated “Acuite AA (Outlook: Negative)” by Acuite Ratings and Research and “[ICRA]A+ (Negative)” by ICRA.

Equirus Capital Private Limited is the Lead Manager of this NCD issue. The issue closes on September 6, 2021 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors. Minimum amount of investment is Rs 10,000 across series. Face value of the NCD is Rs 1000 and the NCD will be issued in dematerialised form only.