Edelweiss Financial Services Limited (EFSL) launched the second tranche of Secured Redeemable Non-Convertible Debentures (NCDs) worth ₹400 crore. The proceeds will be used to pare debt and for general corporate purposes, the company informed the exchanges through a filing on Wednesday.
The NCDs with a face value of ₹1,000 and a total value of ₹200 crore (the base issue) come with an option of retaining over-subscription up to ₹200 crore, taking the total issue size to ₹400 crore.
There are ten different series of NCDs available with fixed coupons and tenures of 24, 36, 60, and 120 months, with options for annual, monthly and cumulative interest. The effective annual yield for the NCDs ranges from 8.94% p.a. to 10.46% p.a.
The issue opens on April 6 and closes on April 21, with an option for early closure. The funds raised will be used to repay existing borrowings of the company and for general corporate purposes, subject to the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
Investors who are holders of NCDs/bonds previously issued by the company, ECL Finance Limited, Nuvama Wealth & Investment Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited, and Nuvama Wealth Finance Limited, and/or equity shareholders of the company will receive an additional incentive of a maximum of 0.20% p.a. in the proposed Tranche II Issue on the deemed date of allotment
The NCDs have been rated highly by CRISIL and Acuite – “CRISIL AA-/Negative” and “ACUITE AA-/Negative,” respectively. Equirus Capital Private Limited is the Lead Manager for this NCD issue, and the NCDs will be listed on BSE Limited to provide liquidity to the investors.