ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group, today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each, aggregating to Rs. 2,500 million, with an option to retain over-subscription up to Rs. 7,500 million aggregating to a total of Rs. 10,000 million (Rs. 1,000 crores).
*The NCDs offer an effective yield of 10.20% p.a. for 39 months tenure, 10.42% p.a. for 60 months tenure and 10.64% for 120 months tenure.
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 half year ended September 30, 2018 (Limited Review) was Rs. 19,875.18 million and Rs. 2,557.40 million, respectively. The Company’s income witnessed a CAGR of 39.32% from Rs. 8,122.76 million in FY2014 to Rs. 30,600.27 million in FY2018 and PAT witnessed a CAGR of 30.35 % from Rs. 1,600.44 million in FY 2014 to Rs. 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 Rs. 60,959.79 million in FY2014 to Rs. 220,081.23 million in FY2018.
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.
IIFL Holdings Limited, Edelweiss Financial Services Limited, Axis Bank Limited and Trust Investment Advisors Private Limited are the lead managers for this NCD Issue. The Public Issue opens on 13 December, 2018 and closes on 11 January 2019, 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.