ECL Finance announces Rs 500 crore public issue of secured redeemable NCDs

ECL Finance Ltd (ECLF), the non-banking finance company of Edelweiss Group, has announced the public issue of secured redeemable non-convertible debentures (NCDs) of a face value of Rs 1,000 each amounting to Rs 100 crore with an option to retain over-subscription up to Rs 400 crore.

The NCDs offer a cumulative yield of 9.9 per cent per annum for 24 months tenure, 10.2 per cent per annum for 39 months, up to 10.4 per cent per annum for 60 months and 10.41 per cent for 120 months tenure (monthly option).

The funds raised through this second tranche issue will be used for onward lending and repayment of interest and principal of existing borrowings of the company and for general corporate purpose.

ECL Finance had announced the first tranche on May 10 with a base size of Rs 150 crore and an option to retain over-subscription up to Rs 150 crore. It witnessed the retail bucket being oversubscribed by 2.36 times with a total collection of Rs 212 crore.

The second tranche issue opens on Monday and closes on November 22 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.

Crisil and Care both have rated the offering AA minus with stable outlook, indicating that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.

Axis Bank and Edelweiss Financial Services Ltd are the lead managers for this NCD issue, the company said in a statement.

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