ECL Finance, a non-banking finance company subsidiary of Edelweiss Financial Services, has raised ₹300 crore through private placement of unsecured perpetual bonds with an annual coupon of 10.25 per cent. These debentures will be listed on the wholesale debt market segment of the BSE. The capital adequacy of the company stood at 16.14 per cent as on March 31. “We have demonstrated track record of raising high-quality capital from diversified resources and the issue received top quality participation from marquee investors,” said Himanshu Kaji, Chief Operating Officer, Edelweiss Group.

The issue received a AA (pronounced double A) rating by accredited rating agencies and its investor base includes mutual funds, provident funds, corporate treasuries and primary dealers.

The consolidated asset base of Edelweiss Group was at ₹38,667 crore as on March-end. The Group intends to further improve the diversity of its product portfolio to cater to the various financial needs of its customers and increase the share of income derived from sale of financial products and services.

Perpetual debt instrument helps shore up capital and meet capital adequacy norms. From the perspective of the issuer, the interest is tax deductible, and the effective cost of the instrument is favourable when compared to equity.

For investors, it offers higher yields when compared to senior instruments of the same firm. Being a long-term instrument, investors can look forward to regular income for a longer term.

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