Edelweiss: CDPQ to invest US$250 million in NBFC arm

CDPQ, a Canadian institutional investor, plans to invest approximately Rs. 1,800 crore or US$ 250 million in Edelweiss's credit business. CDPQ will invest the amount in ECL Finance in three tranches.

ECL Finance is the listed company, Edelweiss Financial Services’ Non-Banking Financial Company (NBFC) arm. The investment from CDPQ will enable ECL Finance to expand its credit business in the NBFC space and help build a diversified credit platform with a focus on SME and affordable housing segment. This capital infusion will help the company suffice its capital requirement for the next 3 to 4 years. ECL Finance will receive US$250 million in three tranches; of which US$ 150 million will come on closing and US$50 million each at the end of one-year and two-year.

CDPQ manages funds worth US$ 300 billion for public and parapublic pension and insurance companies. The company has also invested in Edelweiss Group's asset reconstruction company, Edelweiss ARC.

At 12:12 hours, the stock of Edelweiss Financial Services was trading at Rs. 165.20 per share, up by Rs. 11.40 or 7.41 per cent. The stock opened at Rs. 161.90 per share and hit an intraday high of Rs. 172.70 per share on Wednesday.