Edelweiss’ NBFC arm issues public offer worth Rs 250 crore; effective yield up to 10.25%

Edelweiss Finance & Investments Limited — the NBFC arm of Edelweiss group — today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of a face value of Rs 1,000 each, amounting to Rs 125 crores (“Base Issue”), with an option to retain over-subscription up to Rs 125 crores aggregating to a total of Rs 250 crores (the Issue).

The NCDs offer an Effective Yield up-to 10.25 per cent per annum plus 0.20 per cent additional interest for the tenure of 18 months, 36 months, 60 months and 120 months, with an interest option: Monthly, Annual and Cumulative. The funds raised will be primarily used for the purpose of onward lending and the repayment of interest and principal of existing borrowings of our Company; and for general corporate purposes.

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CRISIL has rated the offering “CRISIL AA-/Stable” and CARE has rated it as “CARE AA-;Stable”. These ratings indicate that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.

IDBI Capital Markets & Securities Limited and Edelweiss Financial Services Limited (“EFSL”) are the lead managers for this issue. The Issue opens on January 23, 2020 and closes on January 31, 2020 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.

“In compliance with the proviso to Regulation 21A (1) of the SEBI or Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (“Merchant Bankers Regulations”), EFSL is involved only in marketing of the Issue.”

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