Edelweiss Financial Services arm raises fund via NCDs

Edelweiss Financial Services wholly-owned  subsidiary, Edelweiss Finance & Investments (EFIL) announced that it has issued secured redeemable Non-Convertible Debentures (NCDs) of a face value of Rs 1,000 each which, amounts to Rs 125 crore (base issue), with an option to retain over-subscription up to Rs 125 crore, aggregating to a total of Rs 250 crore.

The stated debentures offer an effective yield of up to 10.25 per cent along with 0.20 per cent additional interest for tenure of 18 months, 36 months, 60 months and 120 months. The NCDs have monthly, annual and cumulative interest options. The funds raised will be primarily used for the purpose of onward lending and the repayment of interest and principal of existing borrowings of company as well as for general corporate purposes.

Edelweiss Finance & Investments is 100 per cent owned subsidiary, currently having loan book exposure to products such as granting loans against securities, Employee Stock Ownership Plan (ESOP) finance, margin trade financing, Initial Public Offering (IPO) financing and so on.

The stock of Edelweiss Financial Services closed down by 0.44 per cent at Rs 102.25 on BSE after trading mostly higher on Wednesday.