Edelweiss Financial Services to raise ₹200 crore via NCD

Posted on by

Edelweiss Financial Services plans to raise ₹200 crore through public issue of secured redeemable non-convertible debentures (NCDs). The issue has 12 series of NCDs carrying fixed coupons and having a tenure of 24 months, 36 months, 60 months and 120 months with effective annual interest yield of 9.50 per cent to 11 per cent per annum.

The issue will have a base issue size of ₹100 crore with a green-shoe option of ₹100 crore. It will close for subscription on October 18.

The company proposes to use about 75 per cent of the funds raised for repayment of interest and principal of existing borrowings and the balance for general corporate purposes.

Low credit risk

The NCDs proposed to be issued are rated as CRISIL A+ placed on rating watch with negative implications. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk, said the company.

The NCDs will be listed on the BSE to provide liquidity to investors.