L&T Finance Limited announces Tranche I of Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs)

·               Secured NCDs of a face value of Rs.1,000 each

·               The Tranche I Issue includes a Base Issue Size for an amount of Rs. 500 crore (“Base Issue Size”) with an option to retain oversubscription upto Rs. 1,000 crore aggregating up to Rs.1,500 crore (“Tranche I Issue”)

·               The Tranche I Issue is rated as CRISIL AAA / Stable (pronounced as CRISIL triple A with Stable outlook), CARE AAA / Stable (pronounced as CARE triple A with Stable Outlook), IND AAA / Stable (pronounced as IND triple A with Stable outlook).

·               The Tranche I Issue offers effective annualized yield up to 8.64% p.a. on redemption^#

·               The Tranche I Issue opens on December 16, 2019 and closes on December 30, 2019*

·               The Secured NCDs will be listed on BSE and NSE (collectively, “Stock Exchanges”). NSE shall be the Designated Stock Exchange.

Mumbai, December 11, 2019: L&T Finance Limited (a wholly owned subsidiary of L&T Finance Holdings Limited) is coming out with a public issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of the face value of Rs. 1,000 each.

The Tranche I Issue aggregates to Rs. 500 crore, with an option to retain over-subscription upto Rs. 1,000 crore, aggregating upto a total of Rs. 1,500 crore. The Tranche I Issue offers various options for subscription with coupon rates ranging from 8.25% - 8.65% (per annum). The Tranche I Issue opens on December 16, 2019 and closes on December 30, 2019, with an option of early closure or extension.

The Secured NCDs proposed to be issued under this Issue have been rated ‘CRISIL AAA (stable) (pronounced as CRISIL triple A with Stable outlook)’, CARE AAA / Stable (pronounced as CARE triple A with Stable outlook) and IND AAA / Stable (pronounced as IND triple A with Stable outlook). The rating of Secured NCDs by CRISIL, CARE and India Ratings indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

These Secured NCDs, bearing a fixed rate of interest, are being offered under six different series. There are four categories of investors defined as: Category I (Institutional Investors) Category II (Non- Institutional Investors), Category III (High Net-worth Individuals) and Category IV (Retail Individual Investors).

The terms of each series of NCDs, offered under Tranche I Issue are set out below:

**Our Company would allot the Series IV NCDs, as specified in the Tranche I Prospectus to all valid Applications, wherein the Applicants have not indicated their choice of the relevant Series of NCDs.

Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, refinancing the existing indebtedness of the Company (payment of the interest and/or repayment /prepayment of principal of borrowings) (up to 75%) - and the rest (up to 25%) for general corporate purpose.

The Secured NCDs offered through the Tranche I Prospectus are proposed to be listed on the BSE & NSE. NSE shall be the Designated Stock Exchange for the Tranche I Issue.

The lead managers to the Issue are Edelweiss Financial Services Limited, A. K. Capital Services Limited, Trust Investment Advisors Private Limited and JM Financial Limited.

IDBI Trusteeship Services Limited is the Debenture Trustee and Link Intime India Private Limited is the registrar to the issue.