L&T floats first yen convertible bond in India

Engineering and construction major Larsen & Toubro (L&T) has launched a $100 million foreign currency convertible bonds issue denominated in Japanese yen. This is the first yen convertible bond by an Indian company.

The zero-coupon convertible bonds have a maturity of five years and are convertible into global depository shares at a premium of 35 per cent over L&T's closing price of Rs 1,850.70 on the Bombay Stock Exchange on Wednesday.

L&T sources said the bond issue might be listed on the Hong Kong or Singapore stock exchange while the underlying GDR issue will be listed on Luxembourg exchange where the L&T stock was listed.

The listing of the bond at an Asian market was considered necessary as lots of Asian investors had shown interest in the issue.

They added that the proceeds from the bond issue would be utilised for capital expenditure as well as funding organic and inorganic growth, especially in the overseas market.