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

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

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.

Chennai, 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:

Series I II III IV** V VI
Frequency of Interest Payment Annual NA Monthly Annual Monthly Annual
Minimum Application ₹10,000 (10 NCDs) across all Series
Face Value/ Issue Price of NCDs (₹/ NCD) ₹ 1,000
In Multiples of thereafter (₹) ₹ 1,000/- (1 NCD)
Tenor 36 months 36 months 36 months 60 months 60 months 84 months
Coupon (% per annum) for NCD Holders in Category I & II 8.25% NA 7.96% 8.45% 8.15% 8.50%
Coupon (% per annum) for NCD Holders in Category III & IV 8.45% NA 8.15% 8.60% 8.29% 8.65%
Effective Yield (% per annum) for NCD Holders in Category I & II 8.24% 8.25% 8.25% 8.44% 8.45% 8.49%
Effective Yield (% per annum) for NCD Holders in Category III & IV 8.44% 8.45% 8.45% 8.59% 8.60% 8.64%
Mode of Interest Payment Through various mode available
Amount (Rs / NCD) on Maturity for NCD Holders in Category I & II ₹1,000 ₹ 1,268.76 ₹1,000 ₹1,000 ₹1,000 ₹1,000
Amount (Rs / NCD) on Maturity for NCD Holders in Category III & IV ₹ 1,000 ₹ 1,275.81 ₹1,000 ₹1,000 ₹1,000 ₹1,000
Put and Call Option NA NA NA NA NA NA

**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.

About L&T Finance Holdings (Promoter):  

L&T Finance Holdings (LTFH) was incorporated and registered in India under the Indian Companies Act, 1956 on May 01, 2008 as L&T Capital Holdings Limited. The name of the Promoter was changed to
L&T Finance Holdings Limited on September 6, 2010. The equity shares of LTFH is currently listed on BSE and NSE. The Company is engaged in non-banking financial services and its primary businesses include infrastructure, housing, rural and investment management. LTFH is registered with the RBI as a Non-Banking Financial Company – Core Investment Company (“NBFC-CIC”) conducting business through wholly-owned subsidiaries.

@LnTFS                   @LnTFSonline                LTFinance         L&TFinancialServices

Disclaimer:

Allotment in the public issue of debt securities shall be made on the basis of date of upload of each application into the electronic book of the stock exchanges. However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis. For further details refer section titled Issue Related Information on page 53 of the Tranche I Prospectus dated December 9, 2019.*The Tranche I Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that the Tranche I Issue may close on such earlier date or extended date as may be decided by the authorised signatory(ies) as authorised by the Board of Directors of our Company pursuant to the resolution dated July 19, 2019 (“Authorised Personnel”). In the event of an early closure or extension of the Tranche I Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation on or before such earlier or extended date of Tranche I Issue closure. Applications Forms for the Tranche I Issue will be accepted only from 10:00 a.m. to 5:00 p.m. or such extended time as may be permitted by BSE and NSE, on Working Days during the Tranche I Issue Period. On the Tranche I Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3:00 p.m. and uploaded until 5:00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE and NSE.

 # For further details please refer Shelf Prospectus and Tranche I Prospectus both dated Decembers 9, 2019.

 DISCLAIMER CLAUSE OF BSE:

It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE.

DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM:

It is to be distinctly understood that the permission given by the BSE to use their network and software of the online system should not in any way be deemed or construed as compliance with various statutory requirements approved by the Exchange; not does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company.

DISCLAIMER CLAUSE OF NSE:

It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of the NSE.

DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM:

It is to be distinctly understood that the permission given by the NSE to use their network and Online Platform for facilitating applications for public issue of NCDs shall not in any way be deemed or construed as compliance with various statutory and other requirements by the Company; LMs are cleared or approved by NSE; nor does it warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of the Issuer, its promoters, its management or any scheme or projects of the Issuer.

 DISCLAIMER CLAUSE OF INDIA RATINGS:

All credit ratings assigned by India Ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.indiaratings.co.in/rating-definitions. In addition, rating definitions and the terms of use of such ratings are available on the agency’s public website www.indiaratings.co.in. Published ratings, criteria, and methodologies are available from this site at all times. India Ratings’ code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the code of conduct section of this site

DISCLAIMER CLAUSE OF CARE:

CARE Ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell, or hold any security. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/ instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/ instruments. In case of partnership/proprietary concerns, the rating/outlook assigned by CARE is based on the capital deployed by the partners/ proprietor and the financial strength of the firm, at present. The rating/outlook may undergo change in case of withdrawal of capital or unsecured loans brought in by the partners/ proprietors in addition to the financial performance and other relevant factors.

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This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “report”). For the avoidance of doubt, the term “report” includes the information, ratings and other content forming part of the report. the report is intended for the jurisdiction of India only. This report does not constitute an offer of services. without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary licenses and/or registration to carry out its business activities referred to above access or use of this report does not create a client relationship between CRISIL and the user. We are not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. in preparing our report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the report is not intended to and does not constitute an investment advice. the report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind or otherwise enter into any deal or transaction with the entity to which the report pertains. the report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the us).Ratings from CRISIL rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities / instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their Issue. CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its opinions and analysis. CRISIL rating contained in the report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. the recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in anyway CRISIL or its associates may have other commercial transactions with the company/entity. Neither CRISIL nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, “CRISIL parties”) guarantee the accuracy, completeness or adequacy of the report, and no CRISIL party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. each CRISIL party disclaims any and all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. in no event shall any CRISIL party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages. CRISIL ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. CRISIL’S public ratings and analysis as are required to be disclosed under the regulations of the securities and exchange board of India (and other applicable regulations, if any) are made available on its web sites, www.crisil.com. CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its reports. CRISIL keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of CRISIL may have information that is not available to other CRISIL business units. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. for details please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlightedpolicies.html.

DISCLAIMER:

L&T Finance Limited, subject to market conditions and other considerations is proposing a public issue of secured and/or unsecured, redeemable non-convertible debentures and has filed the Shelf Prospectus and Tranche I Prospectus both dated December 9, 2019 with the Registrar of Companies, West Bengal at Kolkata, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus and Tranche I Prospectus both dated December 9, 2019 are available on our website www.ltfs.com, on the website of the stock exchanges www.nseindia.com, www.bseindia.com, on the website of SEBI- www.sebi.gov.in and the respective web sites of the lead managers at www.edelweissfin.com, www.akgroup.co.in, www.jmfl.com and www.trustgroup.in. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Shelf Prospectus and Tranche I Prospectus both dated Decembers 9, 2019. The unsecured, redeemable, non-convertible debentures shall be eligible for Tier II capital. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated December 9, 2019, including the section on “Risk Factors” beginning on Page 20 of the Shelf Prospectus dated December 9, 2019.