India's Edelweiss Financial to offer up to Rs. 5 billion debentures

By Marisa Wong

Madison, Wis., Jan. 14 - Edelweiss Financial Services Ltd. announced a public issue of up to Rs. 5 billion of secured redeemable non-convertible debentures. The company will offer Rs. 2.5 billion of debentures with an up to Rs. 2.5 billion oversubscription option, according to a press release.

The debentures will have a term ranging from 36 to 60 months and will have an interest rate of up to 11.85%.

Icici Securities Ltd., Axis Capital Ltd. and Edelweiss Financial Services are the lead managers for the debentures.

The offering opens on Jan. 16 and closes on Jan. 27, with an option of early closure.

The debentures will be listed on the Bombay Stock Exchange.

The capital raised will be used for financing activities, including lending and investments, for other business operations, including capital expenditure, and for working capital requirements.

"At close to 30% of GDP, India has one of the highest saving rates in the world. Yet, we are not a nation of investors. A large chunk of savings are either being held in low-yielding bank deposits or being channelized into non-financial assets like real estate and gold. Our latest [non-convertible debentures], with its attractive returns offer an opportunity for retail investors to make better investments," Rashesh Shah, Edelweiss' chairman and chief executive officer, commented in the release.

Edelweiss is a financial services organization based in Mumbai.

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