The company is offering an attractive up to 9.7 per cent per annum on these papers. This compares with a maximum 5.4 per cent interest rate on SBI term deposits.
There are eight series of NCDs carrying fixed coupons and having tenures of 36 months, 60 months and 120 months with annual, monthly and cumulative interest options. Effective annual yield for NCDs ranges from 9.09 per cent to 9.70 per cent.
An additional incentive maximum of 0.2 per cent per annum will be offered for all category of investors in the proposed issue, who are also holders of NCDs/bonds previously issued by Edelweiss Financial Services or its group companies, The same will be offered to shareholders of Edelweiss Financial Services on the deemed date of allotment.
Edelweiss said it seeks to raise Rs 200 crore from the issue with an oversubscription option of another Rs 200 crore. This takes the total issue size to Rs 400 crore. The face value of NCDs will be Rs 1,000 each.
“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 utilized for general corporate purposes,” the company said in a statement.
Acute Ratings and Research has rated the issue AA with negative outlook.
has an A+ rating with a negative outlook.
The allotment will be on a first come first serve basis. The NCDs will be listed on BSE to provide liquidity to the investors, said Edelweiss. Equirus Capital is the lead manager of this NCD issue.
