L&T Infra Fin to raise at least Rs 300 cr

L&T Infrastructure Finance will be looking to raise at least Rs 300 crore by way of issuing the second tranche of tax-saving bonds in the current financial year. After mopping up Rs 530 crore through these bonds in the first tranche in November 2011, the infrastructure finance company is confident to raise a total of Rs 1,100 crore including the amount raised during the first tranche.

Although, L&T Infra got a good response in its maiden issue of tax-saving bonds in November last year, the overall limit of Rs 1,100 crore was not exhausted. " We are sure that we will be able to raise the targeted amount this time," said YM Deosthalee, chairman and managing director, L&T Financial Holdings.

The tenor of the bonds is 10 years and the coupon offered stands at 8.70 per cent, both on annual and cumulative basis.

The bonds have been rated AA+ by CARE and ICRA. They also have a buyback option after 5, 7 and 10 years.

While the market for tax-saving bonds is still picking up, L&T Infra feels that the government should give more incentive to investors to put in their money in this instrument. Currently, tax-saving bonds allow a tax-rebate only up to Rs 20,000 on taxable income.