Please find attached intimation for allotment of 180000 Senior, Secured, Rated, Redeemable, NCDs on June 12, 2025.
Awaiting price reaction for this filing.
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 (face value Rs. 1 lakh each). The issuance is split into two equal tranches of Rs. 900 crores each: Option I with a tenor of about 763 days at a coupon of 7.2092% p.a. maturing June 29, 2027, and Option II with a 1,096-day tenor at 7.23% p.a. maturing June 12, 2028. The NCDs are secured by an exclusive first-ranking charge over identified fixed deposits and standard receivables of the company. The debentures are proposed to be listed on the NSE's New Debt Market (NTRP).
This Rs. 1,800 crore NCD raise strengthens L&T Finance's borrowing base at competitive rates (~7.2%), supporting its lending operations. For equity shareholders, it means modest dilution of future returns through added interest obligations, but the secured nature and reasonable coupon signal healthy investor demand.