Thursday, July 19, 2018

Edelweiss announces Rs.20,000 million Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs)



ISSUE OPENS ON 24 July & CLOSES ON 16 Aug, 2018
 ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Financial Services Limited, today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each, aggregating to Rs. 5,000 million, with an option to retain over-subscription up to Rs. 15,000 million aggregating to a total of Rs. 20,000 million (Rs. 2000 crores).
The NCDs offer an interest rate of 9.45% p.a. for 36 months tenure, 9.65% p.a. for 60 months tenure and 9.85% for 10 years tenure. Further, there is also a floating rate option which is linked to the overnight Mumbai Inter-Bank Offer Rate (MIBOR). Under this option, investors can earn the average annualized overnight MIBOR + 2.5% p.a. for 3 years. (Please refer to the Offer Documents for more details).
CRISIL  has rated the offering “CRISIL AA/Stable” and ICRA has given it a  “ICRA AA (Stable)” indicating that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
Total income and profit after tax (PAT) of ECL Finance Ltd. for the financial year ended March 31, 2018 was Rs. 30,600.27 million and Rs. 4,620.47 million, respectively. Over four years the Company’s income from operations witnessed a CAGR of39.32 % to Rs. 30,600.27 million in FY2018, PAT witnessed a CAGR of 30.35 % to Rs. 4,620.47 million in FY 2018 and the loan book of the Company has witnessed a CAGR of 37.84% to Rs. 220,081.23 million in FY2018.

The funds raised through this Issue will be used for onward lending purposes, for refinancing the existing borrowing and general corporate purposes.
Axis Bank Ltd and Edelweiss Financial Services Limited are the lead managers for this NCD Issue. The issue opens on July 24, 2018 and closes on August 16, 2018 with an option of early closure**. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to the investors.
**The subscription list for the Issue shall remain open for subscription upto 5 p.m. on all working days, with an option for early closure or extension by such period, as may be decided at the discretion of the duly authorized committee of Directors of our company subject to necessary approvals, if any. In the event of such early closure of the Issue or extension of the Issue, our Company shall ensure that notice of such early closure or extension of the Issue is given as the case may be on such date of closure through advertisement/s in a leading national daily newspaper with wide circulation on or before such earlier or initial date of Issue closure.
About ECL Finance Limited:
ECL Finance Limited (ECLF) was set up on July 18, 2005 as a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL). It is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-NDSI) registered with the Reserve Bank of India.
ECLF is primarily engaged in the business of corporate lending, providing finance to industrial enterprises, SMEs and individuals, and investment in other securities. Its products include loans to SME, loans against property, , loans against securities, ESOP and IPO financing, , structured collateralized loans to corporates and real estate finance etc.
The company is headquartered in Mumbai and the network of branches across India enables it to service clients across locations.
ECLF’s Company Identification number is U65990MH2005PLC154854

About Edelweiss Group
Edelweiss Group is one of India's prominent diversified financial services conglomerate catering to the diverse investment and strategic requirements of corporate, institutions, high net worth individuals and retail clients. Its businesses are broadly divided intoCredit BusinessFranchise & Advisory Business and Insurance.
The Edelweiss Group serves around 1.2 mn clients from the retail and wholesale segments across its various businesses out of its 448 offices.

DISCLAIMER OF ECL FINANCE Ltd: ECL Finance Limited, subject to market conditions and other considerations is proposing a public issue of secured, redeemable non-convertible debentures (“NCDs”) and has filed the Shelf Prospectus dated 13 July 2018 and Tranche I Prospectus dated 13 July 2018 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus dated 13 July 2018 and Tranche I Prospectus dated 13 July 2018 are available on our websitehttps://eclfinance.edelweissfin.com, on the website of the stock exchanges www.nseindia.comwww.bseindia.com and the respective websites of the lead managers at www.axisbank.com and www.edelweissfin.com. Investors proposing to participate in the issue, should invest only on the basis of the information contained in the Shelf Prospectus dated 13 July 2018 and Tranche I Prospectus dated 13 July 2018. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated 13 July 2018, including the section on “Risk Factors” beginning on Page 14 of the Shelf Prospectus dated 13 July 2018.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the BSE to use their network and software of the Online system should not in any way be deemed or construed as compliance with various statutory requirements approved by the Exchange; not does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in anyway be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of the NSE.
DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the NSE to use their network and Online Platform for facilitating applications for public issue of NCDs shall not in any way be deemed or construed as compliance with various statutory and other requirements by the Company; LMs are cleared or approved by NSE; nor does it warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of the Issuer, its promoters, its management or any scheme or projects of the Issuer.
DISCLAIMER CLAUSE OF CRISIL: CRISIL ratings reflects CRISIL’s current opinion on the likelihood of timely payment of the obligations under the rated instrument and CRISIL does not guarantee the accuracy, adequacy or completeness of the information reviewed. CRISIL ratings are not a recommendation to invest / disinvest in any and should not be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers/users/transmitters/distributors of this product
DISCLAIMER CLAUSE OF ICRA: An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with respect to the instrument rated. ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. ICRA in particular makes no representation or warranty, express or implied as to the accuracy, timelines or completeness of any such information. All information contained herein must be construed solely as statement of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.

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