Money & Banking

Edelweiss Financial Services closes ₹100-crore NCD issue early

Mumbai | Updated on January 02, 2021

The issue, which had an option to retain oversubscription up to ₹100 crore, was scheduled to close on January 15

Edelweiss Financial Services Ltd (EFSL) has decided to close its public issue of secured redeemable non-convertible debentures (NCDs) on January 4, 2021 against the scheduled close of January 15, 2021.

EFSL’s NCD issue, amounting to ₹100 crore (base issue), with an option to retain oversubscription up to ₹100 crore aggregating to a total of ₹200 crore, opened for subscription on December 23, 2020.

The debenture fund raising committee has decided to exercise the option of early closure and to close the issue on January 4, 2021, the company said in a regulatory filing.

Also read: Mixed reactions to RBI panel proposal for conversion of large NBFCs to banks

EFSL, in a statement issued on December 21, 2020, said its NCDs offer an effective yield (cumulative) of 9.95 per cent per annum for 120 months tenure, 9.35 per cent per annum for 36 months tenure and up to 9.80 per cent per annum for 60 months tenure.

Seventy five per cent of the funds raised through this issue will be used for the purpose of repayment /prepayment of interest and principal of existing borrowings of the company.

The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in the issue, EFSL added.

Also read: Edelweiss Asset Management raises ₹6,600 crore in ESOF III

EFSL is principally engaged in providing investment banking services and holding company activities comprising development, managerial and financial support to the business of Edelweiss group entities.

It has seven lines of businesses ― corporate credit, retail credit, wealth management, asset management, asset reconstruction company, life insurance and general insurance.

Published on January 02, 2021

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