L&T Long Term Infrastructure Bonds, Tranche 2 - Key Information

Issue Size - Not Exceeding Rs. 5,705.94 million for the financial year 2011 - 2012. Nature of Instrument - Secured, Redeemable, Non-Convertible Debentures having benifits under section 80CCF of the Income Tax Act, 1961. The Bonds will be issued in Demat mode only. The Bonds having Tax benefits up to Rs. 20,000 per annum under section 80CCF of the Income Tax Act, 1961 The issue has been rated CARE AA+' by CARE and '[ICRA] AA+' by ICRA. Opening date of the issue: January 10, 2012. Closing date of the Issue: February 11, 2012. NRI customers are not eligible to apply for the issue. Proposed to be listed on BSE. Eligible Investors: All Resident Individuals and HUF's Full Allotment to the Applicants on a first come first basis up to the Issue Closing Date or the date falling one day prior to the Oversubscription Date,whichever is earlier. For Applications received on the Oversubscription Date, the Tranche 2 Bonds shall be Allotted in the following order of priority : All Series 2 Bonds which have been applied for, and All Series 1 Bonds which have been applied for. The specific terms of each instrument are as follows: Options I II Frequency of Interest Payment Annual Cumulative, (at the end of maturity orbuyback, as applicable) Face Value Rs 1000/- Minimum Application Rs.5,000/- (i.e. 5 Bond) Interest Rate p.a. (%) 8.70% p.a. 8.70% p.a. compounded annually Buyback Option 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 amount Rs. 1,000/- Rs. 2,303.01/- Maturity Date 10 years from the Deemed Date of Allotment Yield on Maturity and Yield on Buyback 8.70% p.a. 8.70% p.a. compounded annually Lock-in-period 5 Years from deemed date of Allotment