Details of the NCD:

The NCDs come at a face value of Rs 1,000 each, adding to Rs 1,500 million. The issue comes with an option to retain over-subscription up to Rs 1,500 million, aggregating up to Rs 3,000 million.

The tranche I issue opens for subscription on May 10, 2019. The issue, which will be listed on BSE, closes on June 7, 2019, with an option of an early closure, the company also 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", Deepak Mittal, MD & CEO of ECL Finance, said.

Objectives of the issue:

 The funds which will be raised will be used for onward lending, financing, and for repayment of interest and principal of borrowings, the company said. Axis Bank Limited and Edelweiss Financial Services Limited are the lead managers for the issue.

Return:

Rating

The rating agency CRISIL has rated the issue "AA (Double A) or Stable. CARE Ratings has rated it as AA; positive.

Should you invest?

After the IL&FS crisis and other downgrades on some of the companies, if you have the risk appetite to deal with any such unforeseen scenario, then you can lock your amount for a tenure not longer than 3 years as interest rate cycle is likely to reverse.

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