ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group, has announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of a face value of ₹1,000 each, amounting to ₹100 crores, with an option to retain over-subscription up to ₹400 crores, aggregating to a total of ₹500 crores. 

The NCDs offer an effective yield (cumulative) of 9.90 per cent per annum for 24 months tenure, 10.20 per cent per annum for 39 months tenure, up to 10.40 per cent per annum for 60 months tenure and 10.41 per cent for 120 months tenure (monthly option).

Existing holders of NCD(s)/Bond(s) previously issued by ECL Finance Ltd shall be eligible for an additional incentive of 0.25 per cent per annum.

The funds raised will be used for the purpose of onward lending and repayment of interest and principal of existing borrowings of the company and for general corporate purpose.

CRISIL has rated the offering “AA-/Stable" and CARE has rated it as "AA-/Stable." 

The issue opens on November 4th, 2019, and closes on November 22nd, 2019, with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors. 

ECL Finance had announced the issue of Tranche-I NCDs on May 10th 2019, with a base size of ₹150 crores, and an option to retain over-subscription up to ₹150 crores aggregating to a total of ₹300 crores. The Tranche-I issue witnessed a keen interest from retail investors with the retail bucket being oversubscribed by 2.36 times with total collection of ~ ₹212 crores.  

Earlier this year, CDPQ Private Equity Asia Pte Ltd, a wholly owned subsidiary of Caisse de dépôt et placement du Québec (“CDPQ”), one of North America’s largest pension fund managers, had invested ₹1,040 crores in ECL Finance, with a total investment commitment of ₹ 1800 crores. 

Published on November 03, 2019