L&T Infrastructure Finance Company Limited to issue Tranche 1 Bonds starting , on November 25, 2011, through a Public Issue of Long Term Infrastructure Bonds with a 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, aggregating up to Rs. 1,100 crore for 2011-12
The Minimum Subscription will be Rs. 5,000 and in multiples of Rs. 1,000 thereafter.
The Bond Issue will close on December 24, 2011. The first Tranche of Bonds will carry an interest rate of 9% per year payable annually or compounded annually. The Bonds are proposed to be listed on BSE.
Bonds Rated..!
The Bonds have been rated ‘CARE AA+’ by CARE and ‘[ICRA] AA+’ by ICRA considered to offer high safety for timely servicing of financial obligations.
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 Bond will be issued in dematerialised form and trading can also happen in demat form post the Lock-in period of five years from the Deemed Date of Allotment. Redemption /Maturity Date shall be Ten years from the Deemed Date of Allotment.
In these Bonds, the Bondholder has 3 exit options. The first one is at end of 5 years, the second after 7 years and the third after 10 years which is at the time of redemption. Bonds can be held either in the physical or in demat form.
In the case of Series 1 of the Bonds, the interest rate is 9% payable annually and in the case of Series 2, the interest rate is 9% compounded annually payable at the end of maturity or buyback. The maturity is 10 years from the deemed date of allotment.
80CCF Benefit..!
80CCF Benefit: The Bonds have been classified as “Long Term Infrastructure Bonds” as per the terms of Section 80CCF of the Income Tax Act. As notified under Section 80CCF, an amount, not exceeding Rs. 20,000 per annum, paid or deposited as subscription to Long Term Infrastructure Bonds during the previous year relevant to the assessment year beginning April 01, 2012, shall be deducted in computing the taxable income of a resident individual or Hindu Undivided Family (HUF). In the event that any applicant applies for Bonds exceeding Rs. 20,000 per annum, the aforesaid tax benefit shall be available to such applicant only to the extent of Rs. 20,000 per annum.
The Lead Managers to the Bond Issue are ICICI Securities Limited, JM Financial Consultants Private Limited and Karvy Investor Services Limited. The Co-Lead Managers to the Issue are SMC Capitals Limited, Bajaj Capital Limited, RR Investors Capital Services (P) Limited, Integrated Enterprises (India) Limited. The Debenture Trustee to the Issue is Bank of Maharashtra.
About L&T Infrastructure Finance Company Limited
L&T Infrastructure Finance Company Limited incorporated in 2006, is registered with the RBI (Reserve Bank of India) as a systemically important non deposit taking NBFC and an IFC.
The Company has also been granted the status of Public Financial Institution (PFI) in the current fiscal by the Ministry of Corporate Affairs.
The business comprises the provision of financial products and services for its customers engaged in infrastructure development and construction, with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. The Company is also registered with the RBI as an Infrastructure Finance Company which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds.
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Press conference to announce the L&T Tax-saving Long Term Infrastructure Bonds |
The Minimum Subscription will be Rs. 5,000 and in multiples of Rs. 1,000 thereafter.
The Bond Issue will close on December 24, 2011. The first Tranche of Bonds will carry an interest rate of 9% per year payable annually or compounded annually. The Bonds are proposed to be listed on BSE.
Bonds Rated..!
The Bonds have been rated ‘CARE AA+’ by CARE and ‘[ICRA] AA+’ by ICRA considered to offer high safety for timely servicing of financial obligations.
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 Bond will be issued in dematerialised form and trading can also happen in demat form post the Lock-in period of five years from the Deemed Date of Allotment. Redemption /Maturity Date shall be Ten years from the Deemed Date of Allotment.
In these Bonds, the Bondholder has 3 exit options. The first one is at end of 5 years, the second after 7 years and the third after 10 years which is at the time of redemption. Bonds can be held either in the physical or in demat form.
In the case of Series 1 of the Bonds, the interest rate is 9% payable annually and in the case of Series 2, the interest rate is 9% compounded annually payable at the end of maturity or buyback. The maturity is 10 years from the deemed date of allotment.
80CCF Benefit..!
80CCF Benefit: The Bonds have been classified as “Long Term Infrastructure Bonds” as per the terms of Section 80CCF of the Income Tax Act. As notified under Section 80CCF, an amount, not exceeding Rs. 20,000 per annum, paid or deposited as subscription to Long Term Infrastructure Bonds during the previous year relevant to the assessment year beginning April 01, 2012, shall be deducted in computing the taxable income of a resident individual or Hindu Undivided Family (HUF). In the event that any applicant applies for Bonds exceeding Rs. 20,000 per annum, the aforesaid tax benefit shall be available to such applicant only to the extent of Rs. 20,000 per annum.
The Lead Managers to the Bond Issue are ICICI Securities Limited, JM Financial Consultants Private Limited and Karvy Investor Services Limited. The Co-Lead Managers to the Issue are SMC Capitals Limited, Bajaj Capital Limited, RR Investors Capital Services (P) Limited, Integrated Enterprises (India) Limited. The Debenture Trustee to the Issue is Bank of Maharashtra.
About L&T Infrastructure Finance Company Limited
L&T Infrastructure Finance Company Limited incorporated in 2006, is registered with the RBI (Reserve Bank of India) as a systemically important non deposit taking NBFC and an IFC.
The Company has also been granted the status of Public Financial Institution (PFI) in the current fiscal by the Ministry of Corporate Affairs.
The business comprises the provision of financial products and services for its customers engaged in infrastructure development and construction, with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. The Company is also registered with the RBI as an Infrastructure Finance Company which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds.
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