L&T issues FCCBs worth $200 million
The FCCBs have a tenure of five years and one day, with the initial conversion price fixed at Rs1,916.50 per share
Mumbai: India’s largest engineering company Larsen and Toubro Ltd (L&T) on Tuesday said it has launched and priced a so-called accelerated offering of foreign currency convertible bonds (FCCBs).
The FCCBs are convertible into equity shares of the company at the option of the bondholders, it said in a statement to the exchanges.
L&T is issuing $200 million worth FCCBs with a face value of $200,000 per bond and a coupon rate of 0.675% (payable semi-annually). The bonds have a tenure of five years and one day. The initial conversion price of the FCCBs is fixed at ₹ 1,916.50 per share.
“Application will be made for the FCCBs to be listed on the Singapore Exchange Securities Trading Ltd and for in-principle approval for the shares to be issued up on conversion of the FCCBs to be listed on the National Stock Exchange and BSE," L&T said.
L&T had already obtained the approval of its shareholders through postal ballot by a special resolution on 14 July for issuing the FCCBs and for issuing the equity shares upon conversion of FCCBs.
An FCCB is a foreign currency bond with an option to be converted into equity at a later point.
At 9:26am, shares of L&T fell 0.59% to ₹ 1,524.70 apiece on BSE, while the benchmark Sensex index was up 0.06% at 27,222.72 points.
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