L&T Infrastructure Bonds 2012 – Tranche 2

by Chirag on January 19, 2012

in Bonds

L&T Infrastructure Finance Company Ltd (LTIFC) was incorporated in 2006, and is registered with RBI,as a systemically important non deposit taking Non-Banking Financial Company and classified as an Infrastructure Finance Company. Their business comprises the provision of financial products and services for customers engaged in infrastructure development, construction, operations and maintenance with a focus on the power, roads, telecommunications, oil & gas and ports sectors in India. The operations of LTIFC are divided into the three different business segments of Project Finance, Equity Investment, and Financial Advisory Services Segment.

L&T is now offering Tranche 2 80 CCF Infrastructure bonds.

Issue Opening Date- January 10, 2012 - Issue Closing Date – February 11, 2012

Public issue of long term infrastructure bonds of face value of Rs.1,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961 (the “Tranche 2 Bonds”),for an amount aggregating up to Rs. 300 Crs with an option to retain an oversubscription up to the Shelf Limit (including the amount received against the allotment of the Tranche 1 Bonds), to be issued at par on the terms contained in the Shelf Prospectus and this Prospectus – Tranche 2.

Details:

Series 1 2
Interest Payment Annual Cumulative
Face Value Rs 1000 Rs 1000
Buy Back 5 Years & 7 Years 5 Years & 7 Years
Maturity Date 10 Years 10 Years
Interest Rate 8.70% p.a. 8.70% p.a.
Maturity Amount Rs. 1,000 Rs. 2,303.01

Type of Eligible Investors:

  • Indian national resident in India, who are not minors
  • Hindu Undivided Families or HUFs, in the individual name of the Karta

Type of Ineligible Investors:

  • Non Resident Indians
  • Foreign Institutional Investors
  • Overseas Corporate Bodies

Credit Rating:

  • ICRA – [ICRA] AA+
  • CARE – CARE AA+

Other Key Points:

  • Tax Exemption Benefits upto Rs. 20,000/- under section 80 CCF.
  • One can invest more than Rs.20,000/-, but tax exemption would only be upto Rs.20,000/-.
  • Issued in both Dematerialized and physical form.
  • Interest paid on annually or cumulative basis depending upon the series chosen.

Investologic Review:

  • Interest rate offered is lower than what L&Toffered in Tranche 1.
  • SREI is offering 9.15% compared to 8.7% in L&T.

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