Tuesday, August 18, 2009

Secured Non Convertible Debentures from L & T Finance

L & T Finance's NCD issue is now open.

The company is issuing Secured redeemable NCDs with five, seven and ten year duration. The NCDs shall be listed on the NSE.

Details are as below:

Company

L & T Finance

Business

Provides financing for businesses.

Minimum amount of deposit

Rs. 10,000/- and multiples of Rs. 1,000/ thereafter for all schemes for regular investors (ie non High Networth / Non QIBs)

Interest Payments

Various schemes, with interest payable quarterly, semi-annually or on maturity.

Mode of Interest payments


Payment


Ratings & Reviews

CARE : AA+

ICRA : LAA+

Application

Obtain an application from the authorized brokers.

TERMS

SCHEMES

Period

Rate of interest pa (%)

5 years

9.51% p.a., interest payable quarterly

5 years

9.62%, payable semi-annually

88 months (7+ years)

9.95%, compounded annually, payable on maturity

10 years

10.24%, payable semi-annually

Additional Incentives

Senior Citizens : NIL

Shareholders : NIL

Employees : NIL


The rates on longer term NCDs (88 and 120 months),    are not very attractive, while the 60 months NCDs present a decent premium, compared to Bank FDs.        Most recently,  Shriram and Tata Capital offered much better terms on their NCDs,   compared to L & T Finance.

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