L&T Infrastructure Finance Company Limited Bond Issue details

Issue Highlights
Issue size: Rs 200 crores with an option to retain an oversubscription of up to Rs 500 crores.
Face value: Rs 1,000
Minimum Application: 5 bonds.
Lock-in Period: 5 years

Issue Summary
Issue opens: 15th October 2010
Issue closes: 2nd November 2010
Lead managers: JM Financial Consultants Private Limited/ ICICI Securities Limited, SBI Capital Markets Ltd
Registrar: Sharepro Services (India) Pvt. Ltd.
Debenture Trustees: Bank of Maharashtra

Credit Ratings: CARE AA+ CARE
LAA+ ICRA

Salient features of the issue
• Public issue of bonds by an infrastructure finance company under Sec 80 CCF.
• Rating(s): - CARE AA+ by CARE and LAA+ by ICRA.
• These bonds will be issued only to Resident Indian Individuals (Major) and HUF.
• Security: The bonds are fully secured with Exclusive first charge on specific receivables of the Company with an asset cover of one time of the total outstanding amount of Bonds and first pari-passu mortgage/charge on the leasehold rights on land.
• The Bonds bear an attractive combination of coupon rate ranging between 7.50% and 7.75% p.a. coupled with tax benefits of upto. Rs 20,000 under Sec 80 CCF.
• There are 4 investment options, suiting the needs of different categories of investors
• The bonds will be issued in either Demat form or physical form at the option of bondholders
• No TDS shall be deducted for bonds issued in demat form. In case of bonds issued in physical form, TDS will deducted in case interest amount exceeds Rs.2,500 p.a.
• The bonds will be listed on NSE and can be traded after the 5 year lock - in period
• Investors can mortgage or pledge these bonds to avail loans after the lock-in period.
• Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs. 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.

Issue Structure:
Maturity: The Bonds, with a maturity of 10 years, will be issued in 4 series.
Face Value: Each Bond of face value of Rs 1,000 each.
Minimum application: 5 bonds. Applicant may choose to apply for five (5) Bonds of the same series or five (5) Bonds across different series.

Lock in: 5 years from the Date of Allotment.
Buyback facility: Buyback option available to the Investors at the end of 5 Years or 7 Years.

Bond Issue Profile

Benefits to Investors:

Bonds offer an additional window of tax deduction of investments of up to Rs. 20000 which result in attractive yield to investors.

The deduction is over and above the Rs. 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.

For further details contact on the following numbers:

022 - 40156688/40156690/40156699

Thanks,

Gaurav agarwal

Head Dealer

DENIP Consultants Pvt ltd