ECL Finance Ltd, the NBFC (non-banking financial company) arm of Edelweiss Financial Services, on Thursday announced a public issue of unsecured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to Rs 200 crore.
The issue also comes with an option to retain over-subscription up to Rs 200 crore, aggregating to a total of Rs 400 crore.
The NCDs, which will open for subscription on June 17 and close on July 2, are in the nature of subordinated debt with a 70-month tenure.
Funds raised through the issue will be used for financing activities, including lending and investments, to repay existing loans and for business operations like capital expenditure and working capital requirements, Edelweiss Financial said in a statement in Mumbai.
"With a decisive and a pro-reform Government and RBI signaling a dovish policy outlook, the interest rate scenario has been on a softening trajectory."
"NCDs, with their attractive returns, offer a better yielding opportunity for retail investors amongst the other comparable options in debt. NCDs also provide liquidity as they are listed on the stock exchanges," Edelweiss Financial Services chairman and chief executive Rashesh Shah said.