L&T

By Research Desk
about 8 years ago
L&T

L&T Infrastructure Finance Co. Ltd. has also entered the capital market on 10th January 2012 with an issue of Long Term Infrastructure. Bonds, with a face value of Rs. 1,000 each, for total issue size of Rs. 1,100 crores in FY 2012.Issue is closing on 11th February 2012.

The specific terms of the instrument are set out below:

Series

1

2

Frequency of Interest payment

Annual, i.e. yearly payment of interest

Cumulative, i.e. cumulative interest payment at the end of maturity or buyback, as applicable

Face Value per Tranche 2 Bond

Rs. 1,000

Rs. 1,000

Buyback Facility

Yes

Yes

Buyback Date

The first Working Day after the expiry of 5 years from the Deemed Date of Allotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment.

Buyback Amount

Rs. 1,000 at the end of 5 years/ Rs. 1,000 at the end of 7 years

Rs. 1,517.57 at the end of 5 years/ Rs. 1,793.11 at the end of 7 years

Buyback Intimation Period

The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date

Maturity Date

10 years from the Deemed Date of Allotment

10 years from the Deemed Date of Allotment

Interest Rate

8.70% p.a.

8.70% p.a., compounded annually

Maturity Amount

Rs. 1,000

Rs. 2,303.01

Yield on Maturity*

8.70% p.a.

8.70% p.a., compounded annually

Yield on Buyback*

8.70% p.a.

8.70% p.a., compounded annually

In view of falling yield on Govt. Securities, of corresponding residual maturity, this company is also offering an interest of 8.70% p.a. ony, as offered by IDFC.

Still, it is advised to apply in this issue largely to take advantage of tax rebate available under section 80CCF of Income Tax Act, up to Rs. 20,000 per annum.

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