Edelweiss Financial Services announces Rs 2,000m NCD issue

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Edelweiss Financial Services Limited (EFSL) is set to launch a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,000 each, raising up to ₹2,000 million. The NCDs will offer various series with fixed coupons and tenures ranging from 24 to 120 months, providing investors with annual, monthly, and cumulative interest options.

The NCD issue is scheduled to open on October 6, 2023, and close on October 19, 2023. It includes a green shoe option of ₹1,000 million, making the total issue limit ₹2,000 million. Investors can expect effective annual yields ranging from 8.94% to 10.46% across different NCD series.

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A minimum of 75% of the funds raised will go towards repaying existing borrowings, both interest and principal, while the remaining 25% will be allocated for general corporate purposes, subject to regulatory compliance.

Investors holding debentures or bonds issued by EFSL or its affiliated entities, as well as equity shareholders of the company, may be eligible for additional incentives of up to 0.20% per annum.

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CRISIL has rated the NCDs as “CRISIL AA-/Negative,” indicating strong creditworthiness but with a negative outlook, for an amount of ₹10,000 million.

Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the Lead Managers for this NCD Issue. The NCDs will be listed on BSE Limited, ensuring liquidity for investors.

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Edelweiss Financial Services is offering a diverse range of NCDs with attractive yields, catering to various investor preferences. The issue opens doors for investors to participate in a secure investment opportunity with the potential for additional incentives.

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