L&T Finance is selling Rs 1,000 crore bonds. L&T Finance is fully owned unit of Larsen and Toubro (L&T), and have plans to raise up to Rs 1,000 crore via a retail bond sale that opens on Tuesday 18th August 2009 and would remain open till 4th September 2009.
Minimum investment amount is Rs 10,000/- and the rates for the investment options are as follows.
|Details||Tenure||Yield Rate (%)|
|Quarterly Interest Payment||60 months||9.85%|
|Semi Annual Interest Payment||60 months||9.85%|
|Cumulative Interest Payment||88 months||9.95%|
|Semi Annual Interest Payment||120 months||10.50%|
Rates of the bonds are slightly on the lower side compared to other recent bonds but that is acceptable due to the strong reputation of its parent holding company L&T. The bonds are rated “AA-plus” by Credit Analysis and Research Ltd (CARE) and “LAA-plus” by Icra Ltd, indicating high credit quality.