ECL Finance Mops Up ₹515 Cr Via NCD Issue

Markets
Our Bureau

Mumbai | Updated on

November 24, 2019

Published on

November 24, 2019

Edelweiss Financial Services Ltd (EFSL) on Sunday said the public issue of secured redeemable non-convertible debentures (NCDs) aggregating up to ₹500 crore by its non-banking finance company arm, ECL Finance Ltd (ECLF), has been fully subscribed.

ECLF's tranche II issue (base ₹100 crores with a green-shoe option of up to ₹400 crores) mobilized over ₹515 crore, EFSL said in a regulatory filing.

As per ECLF's statement earlier this month, the NCDs offered an effective yield (cumulative) of 9.90 per cent per annum (p.a.) for 24 months tenure, 10.20 per cent p.a. for 39 months tenure, up to 10.40 per cent p.a. for 60 months tenure and 10.41 per cent for 120 months tenure (monthly option).

The funds raised through the tranche II issue will be used for the purpose of onward lending and repayment of interest, principal of existing borrowings of the Company and for general corporate purpose, it added.

"The tranche II issue has seen significant demand in the retail, HNI (high networth investment) and corporate segments with the issue receiving over 16,000 applications....The issue also saw heightened interest from existing NCD investors with over 2000 applications being received in this segment," EFSL said.

Published on November 24, 2019

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