Don’t miss the latest developments in business and finance.

L&T Infra Finance to syndicate funds for Hyd metro

Image
BS Reporter Chennai/ Hyderabad
Last Updated : Jan 25 2013 | 2:53 AM IST

L&T Infrastructure Finance Company would syndicate funds to the tune of a few thousand crore rupees for the first phase of the Rs 12,132-crore Hyderabad Metro Rail project being executed by its parent company, L&T, according to a senior company official. The company has an internal policy not to lend to its own group companies.

It would also go for external commercial borrowing of up to Rs 500 crore in the first half of 2011-12 depending on market conditions, said Ramesh Bhujang, vice president (risk & asset management), L&T Infrastructure Finance. The company is allowed to raise ECB up to 50 per cent of its net worth in the previous year on the automatic route.

He was speaking to the media here on Thursday after announcing the issue of second tranche of the company’s long-term infrastructure bonds to raise Rs 100 crore and an option to retain oversubscription up to Rs 300 crore.

The bonds, issued in two series, carry an interest rate of 8.2 percent (annual) and 8.3 percent (cumulative) respectively, and have a maturity period of 10 years. Investment up to Rs 20,000 in these bonds is income-tax exempted under section 80 CCF.

The bonds, rated AA+ by Care and LAA+ by ICRA, have a face value of Rs 1,000, require a minimum subscription of five and in multiples of one thereafter. The bond allotment is on a first-come first-served basis, and the issue is open till March 7. An interest rate of 6 percent per annum is paid on application amount till the date of allotment. These would be traded on the NSE.

The company, a wholly- owned subsidiary of L&T Finance, registered a CAGR of 52.95 percent in loans from 2008 to 2010, and expects to grow further based on private infrastructure development industry and the parent company’s network of customers and suppliers, said GK Shettigar, vice president, L&T Finance.

Also Read

First Published: Feb 18 2011 | 12:58 AM IST

Next Story