Edelweiss Retail Finance Launches Public Issue of Secured, Redeemable NCDs Worth Rs 5,000 Mn | CORPORATE ETHOS

Edelweiss Retail Finance Launches Public Issue of Secured, Redeemable NCDs Worth Rs 5,000 Mn

By: | March 7, 2018
edelweiss

Mar 7: Edelweiss Retail Finance Ltd (ERFL), the retail lending arm of the Mumbai-based Edelweiss Group, on Wednesday announced its public issue of Non-Convertible Debentures (NCDs) of face value Rs 1,000 each, aggregating up to Rs 2,500 million, with an option to retain over-subscription up to Rs 2,500 million, aggregating a total of Rs 5,000 million.

Commenting on this initiative, Anil Kothuri, Head – Edelweiss Retail Finance, said, “the credit needs of the SME sector have not been adequately addressed thus far. This is a significant opportunity which we are addressing through our rapidly expanding reach and customized product offerings in ERFL.”

According to the company, the public issue of NCDs offers investors an opportunity to lock in at attractive yields ranging from 8.75% p.a. to 9.25%. The NCDs also offer a tenure varying from 3 years to 10 years, with an option to receive interest monthly or annually.

“The NCDs to be issued have received ‘CRISIL AA/Stable’ rating by CRISIL Ltd and ‘[ICRA]AA’ rating with a Stable Outlook by ICRA Ltd, for an amount of Rs 5,000 million each, indicating that the instruments have the highest degree of safety regarding timely servicing of financial obligations, and carry very low credit risk,” it said.

The company further said that Axis Bank Ltd and Edelweiss Financial Services Ltd are the Lead Managers to this NCD issue. The issue opens on March 7, 2018 and closes on March 22, 2018, with an option to close early if it receives complete subscription. The NCDs will be listed on the BSE Ltd and the National Stock Exchange of India Ltd.