L&T Finance Limited has formally decided to exercise the call option on its Subordinated Perpetual Tier I Debt (NCDs) issued in 2016. Following the necessary Reserve Bank of India (RBI) approval received on February 12, 2026, the principal outstanding along with the annual coupon of 9.50% p.a. will be redeemed on March 30, 2026. A formal notice regarding this redemption has been issued to the debenture holders.
Decision to Redeem Perpetual Debt Instruments
L&T Finance Limited (formerly L&T Finance Holdings Limited) has announced the exercise of the call option for its Subordinated Perpetual Tier I Debt, also known as Perpetual Debt Instruments (“NCDs”). These instruments were originally issued on March 30, 2016, by L&T Infrastructure Finance Company Limited, prior to its merger.
Key Redemption Details
The key details regarding the call option exercise are as follows:
- Instrument Series: Series “AO” of FY 2015-16 (ISIN: INE691108438).
- Call Option Exercise Date: The Company formally decided to exercise this option following RBI approval dated February 12, 2026.
- Redemption Date: The final payment date for the principal and coupon is set for March 30, 2026.
- Coupon Rate: The annual coupon payable on redemption is 9.50% p.a.
- Record Date: The Company has fixed March 13, 2026, as the Record Date for determining the eligible debenture holders for this final payment.
Formal Notice Issued
In compliance with the terms of issue, the Company is utilizing the call option, which was permissible after a minimum period of 10 years, subject to prior regulatory consent. A formal notice, enclosed as Annexure A in the original filing, is being sent to all debenture holders of record dated February 20, 2026, confirming this mandatory redemption.
The Company emphasized that it will not be responsible for any claims arising from securities sold or transferred after the established Record Date.
Source: BSE
