Edelweiss Financial Services’ NBFC arm - ECL Finance, has come out with the public issue of unsecured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to Rs 200 crore. The issue also comes with an option to retain over- subscription up to Rs 200 crore, aggregating to a total of Rs 400 crore.
The funds raised through the issue will be used for financing activities, including lending and investments, to repay existing loans and for business operations like capital expenditure and working capital requirements.
The NCDs, which will open for subscription on June 17 and will close on July 2, are in the nature of subordinated debt with tenure of 70 months. It offers investors an opportunity to lock in at interest rate of 12% per annum with monthly, annual and cumulative options. The effective yield in monthly option works out to 12.68% for 70 months tenure and under cumulative option, investors will get 2.01 times of the invested amount at maturity.
