Lloyds Metals and Energy Limited has announced the approval for the allotment of 70,000 Senior, Secured, Listed, Rated, Redeemable, Transferable, Non-Convertible Debentures (NCDs). With a face value of Rs. 1,00,000 each, the total issue size amounts to Rs. 700 crore. This private placement is a significant step in the company’s financing strategy, aimed at bolstering its capital structure and supporting ongoing operations and expansion plans.
Lloyds Metals Secures ₹700 Crore Funding Through NCDs
Lloyds Metals and Energy Limited has officially approved the allotment of 70,000 Non-Convertible Debentures (NCDs), aggregating to a substantial issue size of Rs. 700,00,00,000 (Rupees Seven Hundred Crores Only). These debentures are classified as 9.02% Senior, Secured, Listed, Rated, Redeemable, and Transferable instruments, issued on a private placement basis.
The decision was confirmed through a circular resolution by the Committee of the Board of Directors on August 7, 2026. This issuance follows earlier intimations on August 12, 2025, and May 5, 2026, indicating a structured approach to securing long-term funding.
Key Terms of the NCDs
The NCDs carry a coupon rate of 9.02% per annum and have a tenor of 10 years from the deemed date of allotment, with the maturity date set for August 6, 2036. The face value of each NCD is Rs. 1,00,000, and they will be redeemed at face value. The company has outlined a schedule for interest and principal payments, with the final principal repayment and interest due on August 6, 2036.
Security and Credit Rating
To secure these debentures, Lloyds Metals has created an exclusive first charge by way of hypothecation over all movable plant and machinery belonging to the company. This includes assets like the Grinding Unit – 1 at Hedri, DRI Konsari units, and the Power Plant at Konsari. The company has also committed to maintaining a Security Cover Ratio of not less than 1.25:1 until the final settlement date.
The NCDs have received strong credit ratings, with “IND AA/Stable” assigned by India Ratings and Research Private Limited, and “Crisil AA/Stable” by Crisil Ratings Limited, underscoring the company’s creditworthiness and the security of the investment.
The details of this issuance are available on the company’s website at www.lloyds.in and have been disseminated to the relevant stock exchanges.
Source: BSE
