Edelweiss Financial Services ,EFSL) is looking to raise up to Rs 400 crore through a public issue of bonds which will open next week. The base issue size is Rs 200 crore, with an option to retain oversubscription up to Rs 200 crore.

Under the issue, the company will issue secured redeemable non-convertible debentures (NCD) of face value of Rs.1,000 each.

EFSL in a release on Wednesday said that the effective annualized return for NCDs ranges from 8.84 per cent to 10.09 per cent.

The bond tenors will be of 24 months, 36 months, 60 months and 120 months, with annual, monthly and cumulative interest options.

The issue opens on 3 October and closes on 17 October 2022 with an early closure option.

EFSL said that NCDs will be listed on BSE to provide liquidity to investors.

The financial services firm said it would use at least 75 per cent of the funds raised through the issue for repayment/prepayment of interest and principal of the company’s existing borrowings.

The balance amount is proposed to be utilized for general corporate purposes, subject to the condition that it shall not exceed 25 per cent of the amount raised in the issue as per the Company.

In addition, existing bondholders of the company and its group companies will get an additional benefit of 0.20 per cent per annum on the coupon rate.