The Economic Times daily newspaper is available online now.

    Edelweiss to raise Rs 250 crore through public bond issue

    Synopsis

    The Edelweiss NBFC bonds would be issued at a minimum of Rs 1,000 face value.

    Bonds1-Getty-1200Getty Images
    The NCDs offer an effective yield of 10.20 per cent per annum for 39-month tenure.
    By-Ashwin Manikandan

    Mumbai: The NBFC arm of the Edelweiss Group Thursday announced a public issue of bonds to raise Rs 250 crore, with an option to extend the programme collections to Rs 1,000 crore, underscoring the resumption of broader-market financing to para banks.

    The non-convertible debentures (NCDs) are offered for 39 months, 60 months and 120 months, with yearly yields of 10.20 per cent, 10.42 per cent and 10.62 per cent, respectively. IIFL Holdings, Edelweiss Financial Services, Axis Bank and Trust Investment Advisors are the lead managers for this NCD Issue.

    Rating agencies CRISIL and ICRA rated the issue AA/Stable, indicating that the debt instruments are considered to have a high degree of safety for timely servicing of financial obligations and that they carry low credit risk.

    Para banks have found it difficult to raise funds at competitive rates since mid-September after infrastructure financier IL&FS defaulted on certain repayment commitments, significantly constraining credit lines to NBFCs and home-financiers.

    The Edelweiss NBFC bonds would be issued at a minimum of Rs 1,000 face value. The issue opens on December 13 and closes on January 11, with an option for early closure depending on the money raised. The NCDs will be listed on Bombay Stock Exchange and National Stock Exchange.

    “Going by our past experience, the buying window generally closes in four to five days. We’ll be hoping to close the issue as soon as possible,” said S Ranganathan, CFO, Edelweiss Finance.

    The NBFC had raised Rs 2,000 crore of NCDs in August and used the proceeds to finance home purchases. The funds raised through this issue would be used for onward lending, financing, and repayment/prepayment of interest and principal of existing borrowings, and for general corporate purposes, Edelweiss said.

    Total income and profit after tax (PAT) of ECL Finance Ltd, the NBFC arm of the Edelweiss group, were Rs 1,987 crore and Rs 255.7 crore, respectively, in the fiscal half-year to September. Revenue increased at a CAGR of 39.32 per cent to Rs 3,060 crore in FY18 from Rs 812 crore in FY14.



    ( Originally published on Dec 06, 2018 )
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in