L&T Finance Limited has informed the Exchange regarding allotment of 180000 Senior, Secured, Rated, Listed, Redeemable, NCDs on June 12, 2025
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L&T Finance Limited has allotted 1,80,000 senior, secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) on a private placement basis on June 12, 2025, aggregating to Rs. 1,800 Crores. Each NCD has a face value of Rs. 1 lakh. The issue is split into two equal tranches of Rs. 900 Crores each: Option I carries a coupon of 7.2092% per annum with a 763-day tenor maturing on June 29, 2027, while Option II carries a coupon of 7.23% per annum with a 1,096-day tenor maturing on June 12, 2028. The NCDs are proposed to be listed on the New Debt Market (NTRP) segment of NSE and are secured by an exclusive first-ranking charge on identified fixed deposits and/or standard receivables of the company, equivalent to 1x of the principal and coupon outstanding.
This is a routine debt-raising exercise by L&T Finance to fund its lending business. The coupon rates of around 7.2% reflect competitive borrowing costs for a well-rated NBFC. For equity shareholders, it adds Rs. 1,800 Crores to the company's debt, which may modestly increase leverage, but the strong security cover (1x asset cover) and steady coupon payouts offer comfort to debenture holders.