Edelweiss Financial Services announces ₹ 4,000million Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs)

Edelweiss Financial Services announces ₹ 4,000million Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs)

 

➢Effective Yield of up to 10.09% per annum*

➢Credit Rating: “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” and “ACUITE AA-/Negative” (pronounced as ACUITE double A minus with Negative outlook)

➢ Trading in dematerialized form only

➢ Allotment on date priority basis i.e on first -come- first-serve-basis, based on the date of upload of each application into the electronic system of the Stock Exchange,in each Portion subject to the Allocation Ratio.

Mumbai, September28, 2022: Edelweiss Financial Services Limited (EFSL), today announced the public issue of Secured Redeemable Non-Convertible 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 millionaggregating to a total of ₹ 4,000 million(“Tranche IIIssue”).

 

There are ten series of NCDs carrying fixed coupon and having tenure of 24 months,36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 8.84% to 10.09%*.

 

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 (“SEBI NCS Regulations”).

 

An additional incentive of 0.20% p.a. will be offered for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by our Company, and/ or ECL Finance Limited, Edelweiss Broking Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited and Nuvama Wealth Finance Limited (formerly known as Edelweiss Finance & Investments 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)” and “ACUITE AA-/Negative” (pronounced as ACUITE double A minus with negative outlook).

 

EquirusCapital Private Limited is the Lead Managerof this NCD issue. The Tranche II Issue opens on October 3, 2022 and closes on October 17, 2022 with an option of early closure**. The NCDs will be listed on BSE Limited to provide liquidity to the investors.