Mumbai: L&T Infrastructure Finance, a fully owned unit of Larsen & Toubro Limited, is planning to raise Rs 1100 crore via public issue of long-term infrastructure bonds or tax-saving bonds at 9%.
The bonds, which will carry a minimum lock-in period of 5 years from the date of allotment, can be redeemed after 10-years, the company said in a release.
The bondholder has the options to exit at end of 5 years, after 7 years and after 10 years which is at the time of redemption.
File photo Bloomberg
The issue, which will open on 25 Nov and close on 24 Dec, is rated “AA+” by CARE and ICRA.
ICICI Securities Ltd, JM Financial and Karvy Investor Services are the lead arrangers to the deal, it said.
Applicants get a tax benefit to the extent of Rs 20,000 for investing in long-term infrastructure bonds under Section 80 CCF of Income Tax Act.