L&T Infrastructure Finance announced the public issue of its Long Term Infrastructure Bonds 2011 A – Series
Mumbai: L&T Infrastructure Finance announced the public issue of its Long Term Infrastructure Bonds 2011 A –Series. The money raised from this issue will be utilized towards Infrastructure lending defined by RBI.
Issue period: 7th February 2011 to 7th March 2011
Tax Benefits: Investors can avail of tax deductions under section 80CCF. Up to Rs 20,000 deduction is allowed from the total income of an individual. This deduction is available over and above the aggregate limit of one lakh under sections 80C, 80CCC and 80CCD read with section 80CCE.
Credit Rating: AA+ by CARE and LAA+ by ICRA
Issue Size: Rs 100 crore with an option to retain an oversubscription of up to Rs 300 crore for allotment of additional bonds.
Distribution: The bonds will be distributed through lead running managers, brokers and sub-brokers from their branch networks. The incentive structure is based on the number of applications collected by brokers and funds mobilized by them. But typically, 1% commission is paid out at the minimum.
Listing: NSE
Issue Structure:
The Bonds will carry a minimum Lock-in period of five years from the date of allotment and can be redeemed after ten years from the date of allotment. The minimum subscription will be five bonds and in multiples of one bond thereafter.
Specific terms of the instrument
Series 1 2 Frequency of Interest Annual Cumulative Buyback Facility Yes Yes Buyback Date First working day after 5 years from the date of allotment and first working day after 7 years from the date of allotment First working day after 5 years from the date of allotment and first working day after 7 years from the date of allotment Interest Rates 8.20% p.a. 8.30% p.a. compounded annually Maturity Date 10 years from the date of allotment 10 years from the date of allotment Maturity Amount (Rs) 1000 2220 Buyback Amount (Rs) 1000 at the end of 5 years/1000 at the end of 7 years 1490 at the end of 5 years/1748 at the end of 7 years Buyback Intimation Period The period commencing from 6 months preceding the corresponding buy back date and ending 3 months prior to the corresponding buy back date The period commencing from 6 months preceding the corresponding buy back date and ending 3 months prior to the corresponding buy back date Yield of the Bond on Maturity 8.20% p.a. 8.30% p.a. compounded annually Yield of the Bond on Buyback 8.20% p.a. 8.30% p.a. compounded annually
Lead Managers: ICICI Securities Limited, HDFC Bank Limited (Investment banking division), Karvy Investor Services Limited and SBI Capital Markets Limited. The co-managers to the issue are Bajaj Capital, Integrated Enterprises (India) Limited and RR Investors Capital Services. The debenture trustee to the issue is Bank of Maharashtra.
