Edelweiss NBFC arm's Rs 800-cr NCD issue to open on Feb 26

Non-banking financial services arm of Edelweiss group, ECL Finance, today announced a Rs 800 crore public issue of secured redeemable non-convertible debentures, which will hit the markets on February 26.

The company said the issue has an option to retain over-subscription up to Rs 400 crore, taking the total issue size to Rs 800 crore.

The funds raised through this issue will be used for lending purposes and for repayment of interest and principal of existing loans. With the issue, the company will increase its liability duration and strengthen the ALM profile.

The NCDs offer an interest of 10.15% per annum with a monthly interest option or an annual interest rate of 10.60%, for the 60 months tenure. The effective yield in the monthly option is 10.64% per annum whereas it works out to 10.60% for the annual and cumulative option for the 60 months tenure.

The issue has AA ratings from Care Ratings and Icra with stable outlook.

Axis Capital and Edelweiss Financial Services are the lead managers to the issue, which opens on February 26 and closes on March 16.