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L&T Infra to raise Rs700 cr from tax saving infra bonds

L&T Infra to raise Rs700 cr from tax saving infra bonds
PTI
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First Published: Mon, Oct 18 2010. 03 50 PM IST
Updated: Mon, Oct 18 2010. 03 50 PM IST
Ahmedabad: The L&T Infrastructure Finance Company Ltd (L&T Infra), promoted by engineering major Larsen & Toubro Ltd, would be raising Rs700 crore through its public issue of tax saving infrastructure bonds.
“We have come up with long term infrastructure bonds under section 80CCF of the income tax Act where subscription of up to Rs20,000 made by an individual would be eligible for deduction from taxable income,” L&T Infra CEO Suneet Maheshwari told reporters in Ahmedabad.
“We plan to raise Rs700 crore from this public issue of long term infrastructure bonds, which would be in the nature of secured redeemable non-convertible debentures,” Maheshwari said.
He further said that all funds raised by the bonds would be utilised to finance various infrastructure projects.
The bonds have a maturity of 10 years with two exit options for investors, where the company would offer buyback facility at the end of five and seven years from the date of allotment.
They would be issued in Demat and physical form by the company and could be traded on the NSE after five years lock-in period.
The interest rates offered by L&T Infra are 7.75 % with buyback option of seven years and 7.5 p% for buyback facility after five years.
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First Published: Mon, Oct 18 2010. 03 50 PM IST