Monday, December 19, 2011

L&T Long Term Infrastructure Bonds 2011-12 B Series (Tranche-1) - Closes on December 24th



L&T Long Term Infrastructure Bonds 2011-12 B Series (Tranche-1)










L&T Infrastructure Finance Company Ltd has launched Public issue of Long Term Infrastructure Bonds 2011 B Series (Tranche-1) of face value of Rs. 1,000 each, as nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961 (the “Tranche 1 Bonds”), not exceeding Rs. 1100 Crore for the FY 2012, to be issued at par on the terms contained in the Shelf Prospectus  – Tranche 1.










Issue Details
Long Term Infrastructure Bonds 2011B Series (Tranche-1)
Tranche 1 Bond Series12
Issue OpensFriday, November 25, 2011
Issue ClosesSaturday, December 24, 2011*
IssuerL&T Infrastructure Finance Company Limited
ListingBSE
TradingDematerialized form only following expiry of Lock-in Period
Rating“(ICRA)AA+” from ICRA and “CARE AA+” from CARE
Interest Rate9% p. a.9.00% p.a. compounded annually
Face Value per BondRs. 1,000/-Rs. 1,000/-
Frequency of Interest paymentAnnualCumulative
RegistrarSharepro Services (India) Private Limited.
Minimum Application5 Tranche 1 Bonds and in multiple of 1 Tranche 1 Bond thereafter. For the purpose of fulfilling the requirement of min subscription of 5 Tranche 1 bonds, an applicant may choose to apply for the Tranche 1 bonds across the same series or different series.
Who can apply?• Indian nationals resident in India, who are not minors, in single or joint names (not more than three); and
• Hindu Undivided Families or HUFs, in the individual name of the Karta.
Debenture TrusteeBank of Maharashtra
Lock in Period5 years from the deemed date of allotment
IssuanceDematerialized form or Physical form as specified by an Applicant in the Application Form.
Buyback FacilityYesYes
Buyback DateThe first Working Day after the expiry of 5 years from the Deemed Date ofAllotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment.
Buyback AmountRs. 1,000/- at the end of 5 years/  Rs. 1,000/- at the end of 7 yearsRs. 1,538/62 at the end of 5 years/ Rs. 1,828/04 at the end of 7 years
Buyback Intimation PeriodThe period commencing from 6 months preceding the relevant Buyback Date and Ending 3 months prior to such Buyback Date.
Maturity Date10 years from the Deemed Date ofAllotment10 years from the Deemed Date of Allotment
Maturity Amount1000.002367.36
Yield on Maturity9.00%9.00% compounded annually
Yield on Buyback9.00%9.00% compounded annually
Tax Benefits
Tax Benefit: THE TRANCHE 1 BONDS ARE CLASSIFIED AS “LONG TERM INFRASTRUCTURE BONDS” IN TERMS OF SECTION 80CCF OF THE INCOME TAX ACT AND THE NOTIFICATION. IN ACCORDANCE WITH SECTION 80CCF OF THE INCOME TAX ACT, THE AMOUNT, NOT EXCEEDING ` 20,000 PER ANNUM, PAID OR DEPOSITED AS SUBSCRIPTION TO LONG TERM INFRASTRUCTURE BONDS DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR BEGINNING APRIL 01, 2012 SHALL BE DEDUCTED IN COMPUTING THE TAXABLE INCOME OF A RESIDENT INDIVIDUAL OR HUF. IN THE EVENT THAT ANY APPLICANT APPLIES FOR THE TRANCHE 1 BONDS IN EXCESS OF ` 20,000 PER ANNUM, (INCLUDING LONG TERM INFRASTRUCTURE BONDS ISSUED BY ANY OTHER ELIGIBLE ENTITY), THE AFORESTATED TAX BENEFIT SHALL BE AVAILABLE TO SUCH APPLICANT ONLY TO THE EXTENT OF ` 20,000 PER ANNUM.
Other Conditions
* The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure. Interest on Application and Refund Money The Company shall not pay any interest on the application monies collected pursuant to the Issue pending allotment of the Tranche 1 Bonds. The Company shall not pay any interest on refund of application monies on the amount not allotted.

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