L&T Infrastructure Finance Company is making a public issue of Long Term Infrastructure Bonds 2011, to finance infrastructure lending. The company proposes to issue secured redeemable non-convertible debentures aggregating up to Rs 100 crore with an option to retain an oversubscription of up to Rs 300 crore for allotment of additional bonds.
The bonds having benefits under Section 80CCF of the Income Tax Act, 1961, will open for subscription on February 7, 2011, and close on March 7, 2011. The bonds have been rated as “Care AA+.” by CARE and ‘LAA+’ by ICRA, indicating high safety for timely servicing of debt obligations with high credit quality and low credit risk.
The bonds will carry a minimum lock-in period of five years from the date of allotment and can be redeemed after 10 years from the date of allotment. The issue is proposed to be listed on the National Stock Exchange of India Limited (NSE).
L&T Infrastructure Finance Company Limited was incorporated in 2006. The total income of the company for six months ended September 30, 2010 and fiscal year 2010 was Rs 309 crore and Rs 450 crore, respectively. The total loans and advances outstanding of the company as at September 30, 2010 were Rs 5,272.98 crore and total disbursements for the six months ended September 30, 2010 and Fiscal Year 2010 were Rs 1,751.83 crore and Rs 3,795.51 crore, respectively.
L&T INFRASTRUCTURE FINANCE COMPANY LIMITED:
|Issue Opens||Monday, February 07, 2011|
|Issue Closes||Monday, March 07, 2011|
|Issuer||L&T Infrastructure Finance Company Limited|
|Trading||Dematerialized form only following expiry of Lock-in Period|
|Rating||CARE AA+ by CARE and LAA+ by ICRA|
|Interest Rate||8.20% p.a.||8.30% p.a.|
|Face Value per Bond||Rs. 1,000/-||Rs. 1,000/-|
|Frequency of Interest payment||Annual||Cumulative|
|Lead Managers||ICICI Securities Limited, HDFC Bank Limited, SBI Capital Markets Limited and Karvy Investor Services Limited|
|Registrar||Sharepro Services (India) Private Limited|
|Minimum Application||5 (Five) Bonds.
For the purpose of fulfilling the requirement of minimum subscription of 5 (Five) Bonds, an Applicant may choose to apply for 5 (Five) Bonds of the same series or 5 (Five) Bonds across different series.
|Who can apply?||• Indian nationals resident in India, who are not minors, in single or joint names (not more than three);
• Hindu Undivided Families or HUFs, in the individual name of the Karta.
|Lock in Period||5 years from the deemed date of allotment|
|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|
|Buyback Amount||1,000 at the end of 5 years / 1,000 at the end of 7 years||1,490 at the end of 5 years / 1,748 at
the end of 7 years
|Buyback Intimation Period||The period commencing from 6 months preceding the corresponding Buyback
Date and ending 3 months prior to the corresponding Buyback Date
|Maturity Date||10 years from the Deemed Date of Allotment||10 years from the Deemed Date of Allotment|
|Maturity Amount||Rs. 1,000/- per Bond||Rs. 2,220/- per Bond|
|Yield on Maturity||8.20%||8.30% compounded annually|
|Yield on Buyback||8.20%||8.30% compounded annually|
|Collecting Bankers||Axis Bank Ltd, City Union Bank, Dhanlaxmi Bank Limited, Federal Bank, HDFC Bank Ltd, ICICI Bank Limited, IDBI Bank Limited, ING Vysya Bank Limited, State Bank of India (Addresses mentioned in the application form)|
The Bonds Are Classified As “Long Term Infrastructure Bonds” In Terms Of Section 80ccf Of The Income Tax Act And The Notification. In Accordance With Section 80ccf Of The Income Tax Act, The Amount, Not Exceeding ` 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, 2011 Shall Be Deducted In Computing The Taxable Income Of A Resident Individual Or Huf. In The Event That Any Applicant Applies For The Bonds In Excess Of ` 20,000 Per Annum, (Including Long Term Infrastructure Bonds Issued By Any Other Eligible Entity), The Aforestated Tax Benefit Shall Be Available To Such Applicant Only To The Extent Of ` 20,000 Per Annum.