L&T Infrastructure Finance Company is approaching the market with another long term infrastructure bond. The bond is secured, redeemable and a non-convertible debenture highlighting tax benefit as per Section 80CCF of income tax act. As per Section 80CCF, an amount not exceeding Rs. 20,000 invested in long term infrastructure bonds is liable for tax deduction.

The company wishes to raise Rs. 300 crore with an option to retain over-subscription of up to Rs. 1100 crore. The issue opened on 10 Jan, 2012 and will close on 11 Feb, 2012. The bond is available with a face value of Rs. 1000 and minimum subscription being of 5, tranche 2 bonds and further in multiples of 1 tranche 2 bonds. The tranche 2 bond will be issued in dematerialised form and will get listed on BSE.

Trading in the same can be done after the completion of the 5 year lock-in period from the deemed date of allotment. The redemption of the same can be done after 10 years from the deemed date of allotment. The tranche 2 bonds is available with 3 exit options, one is after completion of 5 years, another after 7 years and the third one after 10 years. Only Indian resident individuals, HUF through Karta can file application for the issue. PAN card and demat account number is compulsory before filing application. The cheque should be drawn in favour of “L & T Infra Bonds 2012A”.

The issue has been highly rated by CARE as CARE AA+ and [ICRA] AA+ by ICRA. The lead managers of the issue are, ICICI Securities Limited, JM Financial Consultants Private Limited and Karvy Investor Services Limited. However the co-lead managers of the issue are, SMC Capitals Limited, Bajaj Capital Limited, RR Investors Capital Services Private Limited and Integrated Enterprises (India) Limited. Bank of Maharashtra is the Debenture Trustee of the issue.

Details of the issue

Issue opened on 10 Jan, 2012
Issue closes on 11 Feb, 2012
Face value Rs. 1000
Minimum subscription 5, tranche 2 bonds
Listing BSE
Series I II
Interest rate 8.70% p.a. 8.70% p.a., compounded annually
Frequency of payment Annual Compounded
Buy-back facility Yes Yes
Buy-back date Next working day after expiry of 5 years/7 years from the deemed date of allotment Next working day after expiry of 5 years/7 years from the deemed date of allotment
Buy-back intimation period  

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

 

  

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

 
Yield on buy-back 8.70% p.a. 8.70% p.a., compounded annually
Buy-back 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 year
Maturity date 10 years from the Deemed Date of Allotment 10 years from the Deemed Date of Allotment
Yield on maturity 8.70% p.a. 8.70% p.a., compounded annually
Maturity amount Rs.1,000 Rs. 2,303.01

 

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