L&T Finance Limited has informed the Exchange about exercise of call option and notice of call option to debenture holders
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L&T Finance Limited will exercise the call option on its Subordinated Perpetual Tier-I Debt (perpetual NCDs) originally issued in 2015 by L&T Infrastructure Finance Company (now merged into L&T Finance). The total face value being redeemed is Rs. 150 crore, comprising 1,500 unsecured NCDs of Rs. 10 lakh each, carrying a 9.90% annual coupon. The RBI approved this call option exercise on June 4, 2025, and the redemption date is set for August 26, 2025, with August 11, 2025 fixed as the record date. This is part of the original terms of the instrument, which allowed the call option to be exercised after a minimum 10-year period.
This is a planned, pre-scheduled redemption built into the original debt terms, not an emergency action. The Rs. 150 crore size is small relative to L&T Finance's overall balance sheet, so the financial impact is modest. It signals healthy capital adequacy and disciplined liability management, which is mildly positive for the company.