Edelweiss Financial Services Limited (EFSL), announced the public issue of Secured Redeemable NonConvertible 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, via an exchange filing.
There are 10 series of NCDs carrying fixed coupons and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options.
Effective annual yield for NCDs ranges from 8.94% p.a. to 10.46% p.a. The Tranche II Issue is scheduled to open on April 6, 2023 and close on April 21, 2023.
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).
The additional incentive will be maximum of 0.20% p.a. for all Category of Investors in the proposed Tranche II Issue, who are also holders of NCD(s)/Bond(s) previously issued by our company, and/ or 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 II Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” by CRISIL and “ACUITE AA-/ Negative (pronounced as ACUITE double A minus)” by Acuite Equirus Capital Private Limited is the Lead Manager of this NCD issue.
The Tranche II Issue opens on April 6, 2023 and closes on April 21, 2023 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
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