Edelweiss Financial Services opened a fresh public issue of bonds or secured redeemable non-convertible debentures (NCDs) with a face value of Rs. 100 crore and green shoe option Rs. 100 crores, a total of Rs. 200 crores. The issue will open on July 8 and close on July 22.
It is Rs. 100 crores each for Rs. 1,000 will be issued at face value. The bond has been rated A+/watch negative by CRISIL. A negative credit watch means that the rating may go down.
The issue consists of 12 series of bonds with fixed coupons and tenors of 24 months, 36 months, 60 months and 120 months with annual, monthly and compound interest options. The effective annual interest yield on these bonds ranges from 9.50% to 11.00% per annum.
“At least 75% of the funds raised through this issue will be utilized for repayment/prepayment of interest and principal of existing borrowings,” the company said. The balance will be used for general corporate purposes.
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