NBFC arm of Edelweiss Financial Services — ECL Finance — is looking to raise up to Rs 800 crore through public issue of secured redeemable non-convertible debentures (NCDs).
The issue comes with two options of three and five-year tenures. It offers lock-in at 10.15% per annum with a monthly interest option or an interest rate of 10.60% with an annual interest option for the 60 months tenure, the press release said.
The effective yield in the monthly option works out at 10.64% per annum whereas it works out at 10.60% for the annual and cumulative option for the 60 months, the release added. For the three-year option, the effective yield works out to be 10.47% per annum, and 10.45% in case of annual and cumulative options.
“To provide for the liquidity, the NCDs will be listed on BSE and National Stock Exchange,” said S Ranganathan, president and chief financial officer, Edelweiss Financial Services.
The company said funds raised through the issue will be used for onward lending and repayment of interest and principal of existing loans. “The NCD offering has received ‘CARE AA’ and ‘ICRA AA (outlook: stable)’ rating,” the release said.
On the timing of the issue, Rashesh Shah, the chairman and CEO at Edelweiss group, said there is a robust credit demand. “The rates have already fallen over the last few months. We don’t want to wait endlessly and play the interest rate cycle,” said Shah.
Earlier, Edelweiss had issued secured NCDs worth Rs 500 crore in January 2014 and sub-ordinated NCDs worth Rs 400 crore in June 2014.
