There are ten series of NCDs carrying fixed coupons and having tenures of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options. Coupons for NCDs range from 8.50 per cent to 9.70 per cent per annum.
The company said it is offering an additional incentive of up to 0.20 per cent per annum to existing holders of bonds issued by the company or ECL Finance, Edelweiss Financial Services, Edelweiss Retail Finance and Edelweiss Finance & Investments. The incentive is also available to shareholders of Edelweiss Financial Services.
That means such investors can get as much as 9.90 per cent per annum interest on their investments. In comparison, SBI’s one-year fixed deposit rates hover around 5.1 per cent.
The proposed NCDs have been rated CRISIL AA-/Negative (pronounced as CRISIL double A-minus rating with Negative outlook) and ACUITE AA/Negative (pronounced as ACUITE double-A rating with Negative outlook).
At least 75 per cent of the funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings, the company said, adding, the balance is proposed to be utilized for general corporate purposes.
The issue opens on April 6 and closes on April 26 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors. Equirus Capital Private and Edelweiss Financial Services are the lead managers to this issue.
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