L&T FINANCE LIMITED
Announces Public Issue of Secured Redeemable
Non-Convertible Debentures (Secured NCDs)
· Secured NCDs of a face value of Rs.1000 each
· The Tranche 1 issue includes a Base issue Size for an amount of Rs. 500 crores (“Base Issue Size”) with an option to retain over subscription up to Rs.
1,000 crores aggregating up to Rs.1,500 crores (“Tranche 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 1 issue offers effective annualized yield up to 9.35% p.a. on redemption.
· The Tranche 1 Issue opens on March 06, 2019 and Closes on March 20, 2019 **
· Post allotment, Secured NCDs will be listed on BSE and NSE. NSE shall be the Designated Stock Exchange.
L&T Finance Limited, one of the leading Systemically Important Non-Banking Financial Services companies in India in terms of total loans outstanding, as of December 31, 2018 is coming out with a public issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of the face value of Rs. 1,000 each. The Tranche Issue aggregates to Rs. 500 crore, with an option to retain over-subscription up to Rs. 1,000 crores, aggregating up to a total of Rs. 1,500 crore. The Tranche 1 Issue offers various options for subscription and the yield on Redemption of up to 9.35% (per annum). The Tranche 1 Issue opens on March 06, 2019 and closes on March 20, 2019, with an option of early closure or extension.
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.
These Secured NCDs, bearing a fixed rate of interest, are being offered under six different Series.
Net proceeds of the 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 the rest (up to 25%) for general corporate purpose.
The Secured NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE & NSE. NSE shall be the designated stock exchange for the Tranche 1 Issue.
The Lead Managers to the Issue are Edelweiss Financial Services Ltd., A K Capital Services Ltd., Axis Capital 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.