Please find enclosed that the Company made an allotment of 100000 Senior, Secured, Listed, Rated and Redeemable Non Convertible Debentures on Private Placement basis on April 15, 2025.
Awaiting price reaction for this filing.
L&T Finance Limited has allotted 1,00,000 Senior, Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) with a face value of Rs. 1,00,000 each, aggregating to Rs. 1,000 Crores, through a private placement to identified investors on April 15, 2025. The issue is split into two equal tranches of 50,000 NCDs each (Rs. 500 Crores per option). Option I carries a coupon of 7.7989% p.a. with a 1,870-day tenor maturing on March 29, 2030, while Option II carries a coupon of 7.5934% p.a. with a 1,171-day tenor maturing on June 29, 2028. The NCDs are proposed to be listed on the NSE's New Debt Market (NTRP) and are secured by an exclusive first-ranking charge on identified fixed deposits and standard receivables of the company.
This is a routine debt-raising move of Rs. 1,000 Crores at competitive coupon rates of around 7.6-7.8%, which will bolster the company's funding base for lending operations. For equity shareholders, there is no dilution as these are non-convertible instruments, but the company carries an additional interest obligation and has created security over certain assets.