L&T Finance, engaged in offering a range of financial services, has come out with a public issue of 25 lakh secured redeemable non-convertible debentures with a face value of Rs. 1,000 each aggregating to Rs. 250 crore with an option to retain oversubscription up to Rs. 250 crore. The three-year bond will carry a coupon rate of 8.40 per cent with two investment options. Under the first option, interest will be paid every six months working out to an annual yield of 8.58 per cent. Under the second option interest will be paid annually and the yield will be 8.50 per cent. The issue is open from February 9 to 22.
Addressing presspersons here on Wednesday, G. K. Shettigar, Assistant Vice-President (Treasury), said the debentures have been rated “AA plus” by CARE indicating high safety for timely servicing of debt obligations. He said ICRA has also rated the instrument “LAA plus” indicating high credit quality and low credit risk. The NCDs would be listed on the Bombay and National stock exchanges, he said.
According to N. Suryanarayanan, Company Secretary, the company may consider loan facility for investors who have subscribed to the NCDs against security of such bonds. The proceeds of the issue will be utilised for various financing activities, repayment of existing loans, and meeting various capital expenditure and working capital requirements.
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