Edelweiss Financial Services Limited (EFSL) will launch a public issue of secured redeemable non-convertible debentures (NCDs) worth Rs 1,000 each on January 3, 2022. The NCDs have a base issue value of Rs 200 crore).
EFSL may retain up to Rs 200 crore in case of over-subscription. Accordingly, the first tranche of these NCDs from January 3-23, 2023, has been rated CRISIL AA-/Negative and ACUITE AA-/Negative.
The NCDs will be listed on BSE to provide liquidity to investors. Equirus Capital Private Limited is the Lead Manager of this NCD issue.
In a release, EFSL said there are ten series of NCDs carrying fixed coupons with tenures of 24 months, 36 months, 60 months, and 120 months with annual, monthly, and cumulative interest payment options.
In aggregate, the effective annual yield for these NCDs ranges from 8.99 per cent to 10.46 per cent.
Why Are These NCDs Issued?
EFSL said at least 75 per cent of the funds raised through the NCDs would be used for repayment or prepayment of interest and principal of the company's existing borrowings , and the balance 25 per cent will be used for general corporate purposes.
Under the Securities Exchange Board of India (Sebi ) regulations of 2021, the maximum utilisation of general corporate purposes should not exceed 25 per cent of the amount raised through NCDs.
Additional Annual Interest of 0.2% For Eligible Investors
An additional incentive of 0.2 per cent per annum will be offered to certain categories of investors. They are:
● All previous investors of NCDs and bonds issued by EFSL, or Edelweiss group company, ECL Finance Limited, Nuvama Wealth and Investment Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited, and Nuvama Wealth Finance Limited.
● All the equity shareholders, as deemed on the date of allotment of the above-mentioned Edelweiss group companies, are also eligible for this additional interest, said the release
