L&T Finance Ltd Allots Rs 1,000 Crore in Senior Secured Non-Convertible Debentures
L&T Finance Limited has completed the allotment of senior secured non-convertible debentures (NCDs) through a private placement. The successful transaction involved the issuance of 1,00,000 NCDs with a face value of Rs. 1,00,000 each, aggregating to an overall nominal value of Rs. 10,00,00,00,000 (Rupees One Thousand Crores Only).The allotment took place on July 07, 2026. These instruments are described as senior, secured, rated, and listed redeemable non-convertible debentures.
Key Terms of the Debenture Issuance
The NCDs were issued via a private placement route. The instruments are proposed for listing on the NTRP under New Debt Market of the National Stock Exchange.To secure the debt, the debentures are backed by an exclusive and first ranking charge over identified fixed deposits of L&T Finance Limited and/or an exclusive and first ranking charge over identified standard receivables (Hypothecated Assets). This security covers up to 1 time of the principal amount and coupon outstanding for the associated Hypothecated Assets or fixed deposits.
The structure includes two options of debentures: Option I and Option II, each with specific maturity dates and coupon rates.
| Debenture Type | Maturity Date | Coupon Rate (Option I) | Principal Redemption Amount |
|---|---|---|---|
| Option I NCDs | June 27, 2031 | 7.7942% p.a. | Rs. 1,00,000.0000 |
| Option II NCDs | September 28, 2029 | 7.8384% p.a. | Rs. 1,00,000.0000 |
Financial and Operational Details
The debentures are scheduled for repayment at a redemption price of Rs. 1,00,000/- per NCD on the date of maturity.Coupon Payments:
- For Option I Debentures, interest payments are set at 7.7942% p.a., with the first coupon payable scheduled for June 27, 2027.
- For Option II Debentures, the coupon rate is fixed at 7.8384% p.a., and the first coupon payment date is set as September 28, 2026.
Principal Redemption:
The principal repayment for both option types is scheduled on their respective maturity dates: June 27, 2031 for Option I Debentures and September 28, 2029 for Option II Debentures.
In the event of a default in payment of interest or principal amount over a period exceeding three months from the due date, an additional interest rate of 2% p.a. over the coupon rate will be payable by the Company for the defaulting period.
LTF Stock Price Movement
L&T Finance Limited shares today slipped by 0.39% to settle at ₹334.2 after post-market trading, marking a day of modest decline. The stock's price action was preceded by an impressive run where it hit its 52-week high, with the company seeing over 4 million shares trade during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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