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Feb 8, 2010

L&T Finance Limited Secured public issue of secured listed redeemable NCD

Details of the public issue of secured listed redeemable NCDs (2010 A Series) by L&T Finance Limited.

Public issue of NCDs aggregating Rs. 250 Crores with an option to retain oversubscription up to Rs. 250 Crores for issuance of additional NCDs, aggregating to a total of up to Rs. 500 Crores

 

Common Terms of the NCDs

Issuer

L&T Finance Limited

Issue

2,500,000 NCDs of Rs. 1,000 each aggregating to Rs. 250 Crores with an option to retain oversubscription up to Rs. 250 Crores for issuance of additional 2,500,000 NCDs, aggregating to a total of up to Rs. 500 Crores

Stock Exchanges proposed for listing of the NCDs

The NSE and the BSE

Issuance and trading

In dematerialized  form only

Depository

NSDL and CDSL

Security

Security will be created for the purpose of this Issue as per the Debenture Trust - cum - Mortgage Deed.

Rating(s)

'CARE AA+' by CARE and 'LAA+' by ICRA

Issue Schedule*

Issue Opening Date: February 9, 2010 and

Issue Closing Date: February 22, 2010

Date of Allotment

The date of allotment shall be the date on which the Board / Committee of Directors, as the case may be, approves the allotment of NCDs.

* The subscription list for the public issue shall remain open for subscription during banking hours for the period indicated above, except that it may close on such earlier date as may be decided by the Board / Committee of Directors of the Company, as the case may be.

 

Issue Structure

 

Particulars

NII

Retail

QIB

Reservation for each category

Up to 40% of issue size*

 (Rs.200 Crores for allotment to NII assuming Issue size of Rs.500 Crores)

Up to 30% of issue size

(Rs.150 Crores for allotment to retail assuming Issue size of Rs.500 Crores)

Up to 30% of issue size

(Rs. 150 Crores for allotment to QIB assuming Issue size of Rs.500 Crores)

Minimum number of NCDs per application#

101 NCDs (Rs.1,01,000/-)

10 NCDs (Rs.10,000/-)

101 NCDs (Rs.1,01,000/-)

Terms of Payment

Full amount on application

Full amount on application

Full amount on application

Mode of allotment

Compulsorily in dematerialised form

Compulsorily in dematerialised form

Compulsorily in dematerialised form

Trading Lot

One NCD

One NCD

One NCD

# The minimum number of NCDs per application form will be calculated on the basis of the total number of NCDs applied for under each such application form and not any specific Option.

 

Out of which up to 15% of issue size including the oversubscription amount is reserved for resident individuals and HUFs.

 

Principal Terms and Conditions of the issue

 

Nature of the NCDs

 

The NCDs which shall have a fixed rate of interest. The NCDs will be issued with a face value of Rs.1,000/- each. Interest on the NCDs shall be payable on annual or semi-annual basis depending on the option selected by the NCD Holder (the "Option") as provided below:

 

Option

I

II

Interest Payment

Semi-annual

Annual

Face Value (Rs.)

1,000/-

1,000/-

Coupon Rate

8.40% p.a.

8.50p.a.

Yield on Redemption

8.58%

8.50%

Tenor

36 months

36 months

Redemption Date / Maturity Period

36 months from the date of allotment

36 months from the date of allotment

Redemption Amount

Face value plus any interest that may have accrued payable on redemption.

Face value plus any interest that may have accrued payable on redemption

Interest on refunds

2.50% p.a.

2.50% p.a.

Interest on application money on which allotments are made

7.00% p.a.

7.00% p.a.

 

 

Day count convention

 

For the purpose of calculation of interest on a per annum basis, the day count convention which will be used would be "Actual/ Actual" basis.

 

Interest on Application Money

 

The Company shall pay interest on the application money on the amount allotted, from the date of realization of the cheque(s) / demand draft(s) up to one day prior to the Date of Allotment, at the rate of7.00% per annum ("Application Interest"). In the event the Company / Registrar is not able to determine the date of realisation of application money, pursuant to application, the interest on application money shall be calculated from the date of application up to one day prior to the Date of Allotment.

 

Refund of Application money

 

The Company shall pay interest on refund of application monies on the amount not allotted up to one day prior to the Date of Allotment, at the rate of 2.50% per annum on the amount refunded ("Refund Interest").

 

The Refund Interest shall be paid along with the refund of application money. Payment of interest on refund of application money is not applicable in case of applications that are rejected on technical grounds or are withdrawn by the applicants.

 

Security

 

The principal amount of the NCDs to be issued together with all interest, costs, charges, fees, remuneration of Trustees and expenses payable in respect thereof shall be secured in favour of the Trustees by way of an exclusive first charge in favour of Trustees by way of mortgage on movables being the receivables arising from Construction Equipment, Lease / Hire Purchase / Term Loans, Loan Against Securities, etc., as specifically identified from time to time, to the satisfaction of the Trustees by way of submission of quarterly stock statements, aggregating up to 1.10 times of the outstanding NCDs and, at the discretion of the Company, to create a mortgage over an immoveable property of the Company.

 

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