Edelweiss Retail Finance hopes to raise Rs 500 crore via public issue

MUMBAI: Edelweiss Retail Finance (ERFL) is raising up to Rs 500 crore by selling bonds through public issuance, which opened for subscription on Wednesday. It has received about Rs 100 crore subscription on the first day. These bonds, which are rated as CRISIL AA/stable by rating company Crisil, have three to 10-year maturities, and offer yields ranging from 8.75 per cent to 9.25 per cent per annum. Investors will have an option to receive interest monthly or annually.

ERFL, the retail lending arm of Edelweiss Group, announced the public issue of NCDs of face value of Rs 1,000 each, aggregating up to Rs 250 crore, with an option to retain over-subscription up to Rs 250 crore, aggregating to a total of Rs 500 crore. “The credit needs of the SME sector have not been adequately addressed thus far,” said Anil Kothuri, Head, Edelweiss Retail Finance. The issue is expected to close on March 22, 2018.