Mumbai, Dec 21 (PTI) Edelweiss Financial Services (EFSL) on Monday said it will raise up to Rs 200 crore through issuance of secured redeemable non-convertible debentures (NCDs).

The base size of the issue is Rs 100 crore, with an option to retain over-subscription up to Rs 100 crore, the company said in a release.

The bonds are offering an effective yield (cumulative) of 9.95 per cent per annum for 120 months tenure, 9.35 per cent per annum for 36 months tenure and up to 9.80 per cent per annum for 60 months tenure.

An additional incentive maximum of 0.20 per cent per annum will be offered for all category of investors in the proposed issue, who are also the holders of bonds previously issued by the company, and/ or its group companies- ECL Finance, Edelweiss Housing Finance, Edelweiss Retail Finance and Edelweiss Finance and Investments and/ or are equity shareholders of Edelweiss Financial Services, the release said.

The company said 75 per cent of the funds raised through the issue will be used for the purpose of repayment /prepayment of interest and principal of its existing borrowings and the balance is proposed to be utilized for general corporate purposes.

The issue will open on December 23, 2020, and close on January 15, 2021, with an option of early closure, it said.

Care Ratings has rated the offering CARE A+; with stable outlook and Brickwork Ratings India Private has rated it as BWR AA-/Stable (Assigned). The lead manager to the issue is Equirius Capital Private. The bonds will be listed on BSE. PTI HV

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