Edelweiss Financial Services launched the second tranche of secured redeemable non-convertible debentures (NCDs) worth ₹400 crore. The proceeds will be used to pare debt and for general corporate purposes, the company informed the exchanges through a filing on Wednesday.
The debentures have a face value of Rs 1,000 each. The base size of the public issue is Rs 200 crore with an option to retain oversubscription up to Rs 200 crore, the company said.
There are 10 series of non-convertible debentures carrying fixed coupons and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options.
The effective annual yield ranges from 8.94-10.46% per annum. The issue is scheduled to open on Thursday and will close on April 21.
“At least 75% of the funds raised through this issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the company, and the balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25% of the amount raised in the issue,” the company said in a release.
Equirus Capital is the lead manager to the issue. NCDs will be listed on the BSE.