Edelweiss set to raise up to Rs 500 cr via bonds

ECL Finance, the non-banking finance company arm of Edelweiss Financial Services, announced the public issue of secured redeemable Non Convertible Debentures (NCDs) of face value of Rs 1,000 each. This aggregates to Rs 250 crore with an option to retain over-subscription of up to Rs 250 crore, which comes to a total of Rs 500 crore.

The NCDs with a tenure ranging from 36 months to 60 months will pay an interest of up to 11.85% per annum.

The capital raised will be used for financing activities including lending and investments, other business operations including capital expenditure and working capital requirements.

The issue opens on January 16 and shall close on January 27. The issue has received CARE "AA" and BWR "AA" with stable outlook indicating high degree of safety for timely servicing of financial obligations and carries very low credit risk.