Press Trust of India / Mumbai Feb 08, 2010, 17:06 IST
L&T Finance Ltd, the financial services arm of engineering major Larsen & Toubro, today said it plans to raise up to Rs 500 crore this month through NCDs, or debt instruments that cannot be converted into equities.
"We want to raise up to Rs 500 crore through this issue. The maturity period is 36 months (three years) from the date of allotment," L&T Finance Senior Vice President (Financial Services) N Sivaraman told reporters here.
L&T Finance will offer 25 lakh secured non-convertible debentures with a maturity period of three years at Rs 1,000 each, totalling Rs 250 crore.
The company has retained the option to raise the additional Rs 250 crore if the issue is over-subscribed, Sivaraman said.
The non-convertible debentures (NCDs) will carry an interest rate of 8.40 per cent per annum while the annualised yield will work out to 8.58 per cent, the company said.
This is the company's second issue of NCDs after it raised Rs 1,000 crore in September last year.
The issue opens on February 9 and closes February 22 and includes various investment options.
"The funds raised through this issue will be used for our various financing activities, including lending and investments, to repay our existing loans and for our business operations, including for our capital expenditure and working capital requirements," the bond sale prospectus said.
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