Mumbai, July 6, 2016: Edelweiss Housing Finance Limited (EHFL), the housing finance arm of Edelweiss Group, today announced the public issue of Secured Non-Convertible Debentures (NCDs) with a face value of Rs. 1000 each, aggregating to Rs. 250 crores, with a green-shoe option to retain over-subscription up to another Rs. 250 crores, aggregating to a total of Rs. 500 crores.
Sharing his views, Rashesh Shah, Chairman and CEO, Edelweiss Group said, “There is a huge base of under-served individuals and businesses in the country that are not able to secure loans. EHFL has managed to tap this market and create customised product offerings that serve their specific needs. Our Retail businesses are becoming significant contributors to the Edelweiss group.”
Talking further about the business’ growth plans, Anil Kothuri, CEO – Edelweiss Housing Finance Limited indicated, “EHFL has grown significantly since inception, we have grown at a CAGR of 49.5% over past 4 years. Enabling factors like governments push for affordable housing, benign macros, and falling interest rates are expected to further fuel housing finance growth. Mid-size HFCs given their focus on affordable housing projects and their relatively higher concentration in tier-II and smaller cities are going to lead this growth. We see significant opportunity for EHFL given our product suite, focus on affordable housing, wide geographic presence. The NCD will help raise capital for portfolio growth and geographic expansion of branches from 45 to 78 over next 18 months”
The NCD issue offers investors an opportunity to lock in at an interest rate of 9.57% p.a. with a monthly interest option or an interest rate of 10.00% p.a. with an annual interest option for 120 months’ tenure. The NCD offering has received “BWR AA+” by Brickwork”, ‘CARE AA” by CARE&‘ICRA AA” by ICRA ratings, indicating that the instruments have a high degree of safety, for timely servicing of financial obligations and carry very low credit risk (please see footnote on CARE and ICRA).
SBI Capital Markets Limited and Edelweiss Financial Services Limited are the Lead Managers for this NCD issue. The issue opens on July 8, 2016 and closes on July 27, 2016. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited.