L&T Finance NCD

L&T Finance Limited has come out with Public Issue of Secured Redeemable Non- Convertible Debentures (NCDs) of face value of Rs.1,000 each aggregating to Rs.250 Crs with an option to retain over-subscription upto an additional Rs.250 Crs, aggregating to a total of Rs.500 Crs. The offer period is between 09th February 2010 to 22nd February 2010. The Debenture has been given
Credit Rating - AA+ by CARE and ICRA.

Details of the Isuue:

Face Value per NCD Rs. 1,000.
Minimum Application Size 10 NCDs for Retail category.
101 NCDs for QIB and NII categories.

There are 2 options:
I - Interest payment Semi-annual with a coupon rate of 8.40 % p.a.
II - Interest payment Annual with a coupon rate of 8.50% p.a.
Redemption Date / Maturity Period 36 months from the date of allotment.
The NCDs are to be listed in NSE and BSE.

Considering current bank Fixed Deposit rates of around 7%, this debenture is a better option to park some funds in it.