Edelweiss Financial Services Limited (“EFSL”), announced the public issue of Secured Redeemable Non-Convertible Debentures (“NCDs”) of the face value of ₹1,000 each, amounting to ₹1,500 million (“Base Issue Size”), with an option to retain over-subscription up to ₹1,500 million aggregating to ₹3,000 million (“Tranche III Issue Limit”), the company announced on Monday through an exchange filing.
There are ten 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 III Issue is scheduled to open on July 04, 2023, and close on July 17, 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 III Issue, who are also holders of NCD(s)/Bond(s) previously issued by our Company, and/ or ECL Finance Limited, Edelweiss Retail Finance Limited, and Nido Home Finance Limited (formerly known as Edelweiss Housing 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 III Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” by CRISIL Ratings Limited and “ACUITE AA-/Negative (pronounced as ACUITE double A minus)” by Acuite Ratings & Research Limited.
Equirus Capital Private Limited is the Lead Manager of this NCD issue. The Tranche III Issue opens on July 04, 2023, and closes on July 1, 2023, with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.