- Secured NCDs of a face value of Rs.1000 each.
- The Tranche 2 issue includes a Base issue Size of Rs. 500 crore (“Base Issue Size”) with an option to retain oversubscription of up to Rs. 500 crore aggregating up to Rs.1,000 crore (“Tranche 2 Issue”).
- The offer is rated as [ICRA] AAA / Stable (pronounced as ICRA triple A with Stable outlook), CARE AAA / Stable (pronounced as CARE triple A with Stable Outlook), IND AAA / Stable (pronounced as IND triple A with Stable outlook).
- The Tranche 2 issue offers effective annualized yield up to 9.05% p.a. on redemption.
- The Tranche 2 Issue opens on April 08, 2019 and Closes on April 18, 2019 **.
- Post allotment, Secured NCDs will be listed on BSE and NSE. NSE shall be the Designated Stock Exchange.
MUMBAI, (GNI): : L&T Finance Limited (a wholly owned subsidiary of L&T Finance Holdings Limited) is coming out with Tranche 2 of public issue of secured redeemable non-convertible debentures (“Secured NCDs”) of face value of Rs. 1,000 each. This Tranche aggregates to Rs. 500 crore, with an option to retain over-subscription up to Rs. 500 crore, aggregating up to a total of Rs. 1000 crore. The Tranche 2 issue offers various options for subscription and the yield on Redemption of up to 9.05% (per annum). The Tranche 2 issue opens on April 08, 2019 and closes on April 18, 2019, with an option of early closure or extension. In this Tranche, across tenors, the interest rates offered to retail investors are higher than that being offered to institutional investors.
The Secured NCDs proposed to be issued under this Issue have been rated ‘[ICRA] AAA (stable) (pronounced as ICRA triple A with Stable outlook)’, CARE AAA / Stable (pronounced as CARE triple A with Stable outlook) and IND AAA / Stable(pronounced as IND triple A with Stable outlook). The rating of NCDs by ICRA, CARE and India Ratings indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
The Secured NCDs, bearing a fixed rate of interest, are being offered under seven different options. The terms of each options of NCDs, offered under Tranche 2 Issue are set out below:
Net proceeds of the Tranche 2 issue will be utilized for the purpose of onward lending, financing, refinancing the existing indebtedness of the Company (payment of the interest and/or repayment /prepayment of principal of borrowings) (up to 75%) and up to 25% for general corporate purpose.
The Secured NCDs offered through the Tranche 2 Prospectus are proposed to be listed on the BSE & NSE. NSE shall be the designated stock exchange for the Tranche 2 Issue.
The Lead Managers to the Issue are Edelweiss Financial Services Ltd., A K Capital Services Ltd., Axis Bank Ltd. and Trust Investment Advisors Pvt. Ltd.
Catalyst Trusteeship Ltd. is the Debenture Trustee and Link Intime India Pvt. Ltd. is the registrar to the issue.
About L&T Finance Limited is one of the leading Systemically Important Non-Deposit taking Non-Banking Financial Company in India in terms of total loans outstanding, as of December 31, 2018. Our Promoter is registered with the RBI as a Non-Banking Finance Company – Core Investment Company (“NBFC-CIC”) conducting business through its wholly-owned subsidiaries. The Company is a part of the larger L&T group which is one of the leading business conglomerates in India, with presence across infrastructure, power, heavy engineering, electrical and automation, hydrocarbons, IT and technology services, financial services, project development, metallurgical and material handling, realty, shipbuilding, construction equipment, machinery and industrial products sectors.
The Company’s operations are spread throughout India and it has 223 branches in 218 cities across 21 states and 3 union territories, as of December 31, 2018. In addition, for its micro loans business, it has 1,181 meeting centres covering 274 districts across 14 states in India, as of December 31, 2018. The company has 19,649 employees as of December 31, 2018. Each of its businesses is led by senior executives who are, generally, also responsible for certain organizational functions at the group level. Together, they have demonstrated the ability to manage and grow the company’s operations. Ends