L&T Finance Limited has informed the Exchange about General Updates
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L&T Finance Limited is exercising a call option on 500 unsecured, non-convertible, subordinated perpetual Tier-I debentures originally issued by Family Credit Limited (merged into L&T Finance in 2017) on March 29, 2016. The total face value is Rs. 50 crore (Rs. 10 lakh each), carrying a coupon of 10.10% per annum, under ISIN INE027E08079. With RBI approval dated February 12, 2026, the company will redeem the principal along with the annual coupon on March 30, 2026. The record date for the payment has been set as March 13, 2026. This exercise is being done after the minimum 10-year call option period as per the original terms.
This is a planned, routine redemption of legacy perpetual debt at a relatively high 10.10% coupon rate, which is likely favourable for the company in the current lower interest rate environment. For shareholders, the impact is minimal given the small size (Rs. 50 crore) and that it was anticipated, but it signals disciplined capital management.