L&T Finance Limited has successfully completed a private placement of 50,000 senior, secured, rated, non-convertible debentures. The issuance, finalized on April 21, 2026, has an aggregate value of ₹500 crore. These debentures carry a coupon rate of 7.7942% per annum, with a maturity date set for June 27, 2031. The funds will be secured through an exclusive charge on the company’s fixed deposits and standard receivables.
Key Issuance Details
L&T Finance has bolstered its capital resources through the private placement of 50,000 debentures, each with a face value of ₹1,00,000. This issuance marks a significant financial move, bringing the total aggregate value to ₹500 crore. The capital was raised to support the company’s financial operations and is backed by high-quality collateral.
Terms and Security
The debentures are senior and secured instruments, ensuring investor protection through an exclusive and first-ranking charge. The security cover is maintained via identified fixed deposits and standard receivables held by the company, equivalent to one time the principal and outstanding coupon amounts. Investors can expect a coupon rate of 7.7942% p.a., with the first interest payment scheduled for June 27, 2026.
Maturity and Default Provisions
The tenure for these debentures is set at 1,893 days, with the final redemption occurring on June 27, 2031. The company has also established clear protocols for potential payment delays; in the event of any default on interest or principal redemption, an additional interest of 2% per annum will be levied over the existing coupon rate for the duration of the default.
Source: BSE
