Edelweiss Housing Finance (EHFL), the housing finance arm of Edelweiss Group, today said it will raise up to Rs 500 crore debt.\u00a0The company will be raising Rs 250 crore through sale of non-convertible debentures, which also has a green-shoe option to retain over-subscription up to another Rs 250 crore, taking the aggregate amount to Rs 500 crore. "Enabling factors like governments push for affordable housing, benign macro situations, and falling interest rates are expected to further fuel housing finance growth. The NCD will help raise capital for portfolio growth and geographic expansion from 45 to 78 over next 18 months," chief executive Anil Kothuri told reporters here. He said the company, so far, has met funding requirement from banks, institutional markets and National Housing Bank, and this is the first time it will be raising money from the retail NCD issue, he said. The bond issue will offer investors an interest rate of 9.57 per cent per annum with a monthly interest option or an interest rate of 10 per cent per annum with an annual interest option for 120 months. Edelweiss Financial Services President and Chief Financial Officer S Ranganathan said besides raising money for future growth, the funds will be used to repay a part of debt that EHFL is holding in its books. Kothuri said out of the total funds which will be raised through the NCD, around Rs 150 crore will be used to retire debt and the balance will be growth capital. He said the company plans to raise more funds through NCDs in future. "Bank borrowing will come down from the current level of 65 per cent to nearly 30 per cent and (raising funds from) the retail market will fill that space," Kothuri added. The issue, which will open on July 8 and closes on July 27, are managed by SBI Capital Markets and Edelweiss Financial Services, and will be listed on BSE and NSE.