Edelweiss Financial Services NCDs offer up to 10.46% yield; check details here

Edelweiss Financial Services has announced a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs 200 crore with an option to retain over-subscription of up to Rs 200 crore, aggregating to Rs 400 crore. The Tranche II Issue is set to open on April 6, 2023, and close on April 21, 2023.

The NCDs come in 10 series with fixed coupons and tenures of 24 months, 36 months, 60 months, and 120 months with annual, monthly, and cumulative interest options. The effective annual yield for NCDs ranges from 8.94 per cent per annum (p.a.) to 10.46 per cent p.a. Companies use NCDs as a means of raising long-term capital by issuing fixed-income instruments that do not have the option of being converted into equity shares upon maturity.

The NCDs issued in this Tranche II Issue have been rated “CRISIL AA-/Negative” by CRISIL and “ACUITE AA-/Negative” by Acuite. Equirus Capital Private Limited is the Lead Manager of this NCD issue. The NCDs will be listed on BSE Limited to provide liquidity to the investors.

At least 75 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, and the balance is proposed to be utilised for general corporate purposes.

Edelweiss Financial Services was incorporated on November 21, 1995, under the name Edelweiss Capital Limited and started operations as an investment banking firm after receiving a Category II license from SEBI.

Investors looking for secured NCDs with a fixed income and long-term tenure can consider subscribing to this Tranche II Issue.

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