Friends,
After the closing of the second issue of IDFC Infrastructure Bond on 04th February, 2011, the L&T Infrastructure Finance Company also came in to market with their Infrastructure Bond, which is helpful to get additional Income Tax Exemption of Rs. 20000 under section 80CCF. This the second issue of infrastructure bond form L&T Infrastructure Finance Company in the financial year 2010-11.
The L&T Infrastructure Bond opens from 7th February, 2011 and the issue will be closed on 07th March, 2011. The total issue of Rs 100-crore non-convertible debentures, offering a coupon of 8.20% per annum in the first series (series I) which can be redeemed after 5 years and 8.3% in the second series or (series II) can be redeemed after 7 years.
This infrastructure bond is also almost same with other infrastructure bonds and the investor can claim tax benefit under section 80 CCF, which is allowed and additional deduction of Rs. 20000 from the total income of the tax payer and the highest tax bracket can save Rs. 6180 including education cess. Others also can get benefit as per their tax brackets and this last time issue also may be welcomed by the investors.
The L&T Infrastructure Bond opens from 7th February, 2011 and the issue will be closed on 07th March, 2011. The total issue of Rs 100-crore non-convertible debentures, offering a coupon of 8.20% per annum in the first series (series I) which can be redeemed after 5 years and 8.3% in the second series or (series II) can be redeemed after 7 years.
This infrastructure bond is also almost same with other infrastructure bonds and the investor can claim tax benefit under section 80 CCF, which is allowed and additional deduction of Rs. 20000 from the total income of the tax payer and the highest tax bracket can save Rs. 6180 including education cess. Others also can get benefit as per their tax brackets and this last time issue also may be welcomed by the investors.- Issuer :L&T Infrastructure Finance Company Limited
- Issue :Public issue of Bonds, in the nature of secured, redeemable, non-convertible debentures of our Company, having benefits under section 80 CCF of the Income Tax Act aggregating up to ` 1,000 million with an option to retain an over subscription of up to ` 3,000 million for allotment of additional Bonds to be issued in terms of this Prospectus.
- Instrument Options Series 1: 8.20% annual coupon paying 10 year bond with a buyback option at the end of 5 years and at the end of 7 years; and Series 2: 8.30% cumulative coupon paying 10 year bond with a buyback option at the end of 5 years and at the end of 7 years.
- Frequency of Interest Annual, i.e. yearly payment of interest for Series 1; Cumulative, i.e. cumulative interest payment at the end of maturity or buyback, as applicable for Series 2.
- Face Value ` 1,000
- Issue Price ` 1,000
- Minimum Application 5 (Five) Bonds. For the purpose of fulfilling the requirement of minimum subscription of 5 (Five) Bonds, an Applicant may choose to apply for 5 (Five) Bonds of the same series or 5 (Five) Bonds across different series
- Issuance In dematerialised form*
- Lock In period 5 years from the Date of Allotment
- Redemption /Maturity Date 10 years from the Date of Allotment
- Rating(s) CARE AA+ by CARE and LAA+ by ICRA
- Issue Schedule** Issue Opening Date: February 7, 2011 and
- Issue Closing Date: March 7, 2011
- 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 the Bonds .
- Modes of Payment
- National Electronic Clearing System
- Cheques / Demand Drafts / Warrants
- Direct Credit
- NEFT
- RTGS
Buyback Options Buyback option available to the Investors at the end of 5 years and 7 years
* In terms of Regulation 4(2)(b) of the Debt Regulations, the Company will make public issue of the Bonds in the dematerialised form. However, in terms of Section 8 (1) of the Depositories Act, the Company, at the request of the Investors who wish to hold the Bonds in physical form will fulfil such request.
** The 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 our Company, as the case may be. In case of an earlier closure, our Company shall ensure that notice is given to investors through advertisements prior to such earlier closure date.
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that it may close on such earlier date as may be decided by the Board / Committee of Directors of our Company, as the case may be. In case of an earlier closure, our Company shall ensure that notice is given to investors through advertisements prior to such earlier closure date.
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