L&T Finance to raise up to Rs 1,500 cr via NCDs
Nonbanking financial company LT Finance is planning to raise up to Rs 1,500 crore through nonconvertible debenture issues in three tranches
In the first tranche, it is offering three bonds maturing in 36, 60 and 120 months.
​Mumbai: Non-banking financial company L&T Finance is planning to raise up to Rs 1,500 crore through non-convertible debenture issues in three tranches.
The base size of the issue, which is opening on March 6 and closing on 20, is Rs 500 crore, with an option to retain over-subscription up to Rs 1,000 crore, company said on Thursday.
In the first tranche, it is offering three bonds maturing in 36, 60 and 120 months.
The coupon for retail investors are in the range of 9.10-9.35 per cent, while for institutional investors it is 9-9.20 per cent.
"This issue is to make sure that our liability mix is more diversified. Like we have retailised our asset side, this is the first step in retailisation of our liability side," managing director and chief executive Dinanath Dubhashi said.
Over the next four-five years, the company will make sure that retail funds/foreign funds (external commercial borrowing)/masala bonds form a good percentage of its overall balance sheet, he said.
Dubhashi said the issue will not reduce its overall interest cost as its cost of borrowing is 8.5 per cent and the coupon offered in the issue is more than 9 per cent.
"This NCD issue should be seen as the first step in a overall strategic intent of building a retail liability franchise," he added.
The proceed will be used for onward lending, financing, refinancing the debt and for general corporate purpose, he said, adding the bonds will be listed on the BSE and NSE. The issue opens on March 6 and closes on 20.
The lead managers to the issue are Edelweiss, AK Capital Services, Axis Capital and Trust Investment Advisors.
