L&T
L&T Infrastructure Finance Co. Ltd. has also entered the capital market on 10th January 2012 with an issue of Long Term Infrastructure. Bonds, with a face value of Rs. 1,000 each, for total issue size of Rs. 1,100 crores in FY 2012.Issue is closing on 11th February 2012.
The specific terms of the instrument are set out below:
| Series | 1 | 2 |
| Frequency of Interest payment | Annual, i.e. yearly payment of interest | Cumulative, i.e. cumulative interest payment at the end of maturity or buyback, as applicable |
| Face Value per Tranche 2 Bond | Rs. 1,000 | Rs. 1,000 |
| Buyback Facility | Yes | Yes |
| Buyback Date | The first Working Day after the expiry of 5 years from the Deemed Date of Allotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment. | |
| Buyback Amount | Rs. 1,000 at the end of 5 years/ Rs. 1,000 at the end of 7 years | Rs. 1,517.57 at the end of 5 years/ Rs. 1,793.11 at the end of 7 years |
| Buyback Intimation Period | The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date | |
| Maturity Date | 10 years from the Deemed Date of Allotment | 10 years from the Deemed Date of Allotment |
| Interest Rate | 8.70% p.a. | 8.70% p.a., compounded annually |
| Maturity Amount | Rs. 1,000 | Rs. 2,303.01 |
| Yield on Maturity* | 8.70% p.a. | 8.70% p.a., compounded annually |
| Yield on Buyback* | 8.70% p.a. | 8.70% p.a., compounded annually |
In view of falling yield on Govt. Securities, of corresponding residual maturity, this company is also offering an interest of 8.70% p.a. ony, as offered by IDFC.
Still, it is advised to apply in this issue largely to take advantage of tax rebate available under section 80CCF of Income Tax Act, up to Rs. 20,000 per annum.