Effective Yield of up to 10.42% per annum
CRISIL AA (Double A)/Stable from CRISIL and CARE AA; Positive from CARE
Trading in dematerialized form only
New Delhi May 9th, 2019: ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group, today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of face value of ₹1,000 each, aggregating up to ₹1,500 million (hereinafter referred to as the ‘Base Issue’), with an option to retain over-subscription up to₹1,500 million aggregating to a total of ₹3,000 million (hereinafter referred to as the ‘Tranche I Issue’).
The NCDs offer an effective yield of 9.90% p.a. for 24 months tenure, 10.20% p.a. for 39 months tenure, up to 10.42% p.a. for 60 months tenure and 10.42% for 120 months tenure.
CRISIL has rated the offering “AA (Double A)/Stable and CARE has rated it as AA; Positive. These ratings indicate that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
The funds raised through this Issue will be used for purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and for general corporate purpose.
Axis Bank Limited and Edelweiss Financial Services Limited# are the lead managers for this NCD Issue. The Tranche I Issue opens on 10th May 2019 and closes on 7th June 2019 with an option of early closure**. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
#In compliance with the proviso to Regulation 21A (1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (“Merchant Bankers Regulations”), Edelweiss Financial Services Limited (“EFSL”) will be involved only in marketing of the Issue.
Deepak Mittal, MD & CEO of ECL Finance, said, “Edelweiss has built a competitive position across businesses including the Credit segment, with a diversified product mix across corporate and retail customers. Our focus will be on maintaining the quality of our loan book. With the public issue of NCDs we will further diversify our funding sources”
ECL Finance is the NBFC arm of Edelweiss Group which is one of India’s prominent financial services organization having businesses organized around three broad lines – credit including retail finance; franchise & advisory businesses including wealth management, asset management and capital markets and insurance business. The product/ services portfolio of the Edelweiss Group caters to the diverse investment and strategic requirements of corporate, institutional, high net worth individuals and retail clients. Edelweiss Group has a pan India presence with a global footprint extending across geographies with offices in New York, Mauritius, Dubai, Singapore, Hong Kong and UK. EFSL is listed on BSE and NSE. EFSL through its subsidiaries, offers to its customers a diversified financial services platform that provides various secured corporate loan products, retail loan products and services, SME financing, agri value chain services including agri credit, wealth advisory services, asset management, insurance, investment banking, institutional and retail broking.
Total income and profit after tax (PAT) of ECL Finance Ltd. for the 9 months ended December 31, 2018 was ₹. 30,417.99 million and ₹4,195.32 million, respectively. The Company’s income witnessed a CAGR of 39.32% from ₹8,122.76 million in FY2014 to ₹30,600.27 million in FY2018 and PAT witnessed a CAGR of 30.35 % from ₹1,600.44 million in FY 2014 to ₹4,620.47 million in FY 2018. The Loan Book as per Ind GAAP of the Company has witnessed a CAGR of 37.84% from ₹60,959.79 million in FY2014 to₹220,081.23 million in FY2018. The loan book as at 31 Dec 2018 stood at ₹228,059.22 million