L&T Infra Finance to issue tax-saving infrastructure bonds

Mumbai, Feb 3 (PTI) L&T Infrastructure Finance Company ismaking a public issue of Long Term Infrastructure Bonds 2011,to finance infrastructure lending.

The company proposes to issue secured redeemablenon-convertible debentures aggregating upto Rs 100 crore withan option to retain an oversubscription of up to Rs 300 crorefor allotment of additional bonds.

The bonds having benefits under Section 80CCF of theIncome Tax Act, 1961, will open for subscription on February7, 2011, and close on March 7, 2011.

The bonds have been rated as "Care AA+." by CARE and''LAA+'' by ICRA, indicating high safety for timely servicing ofdebt obligations with high credit quality and low credit risk.

The bonds will carry a minimum lock-in period of fiveyears from the date of allotment and can be redeemed after tenyears from the date of allotment.

The issue is proposed to be listed on the National StockExchange of India Limited (NSE).

L&T Infrastructure Finance Company Limited wasincorporated in 2006. The total income of the company for sixmonths ended September 30, 2010 and fiscal year 2010 wasRs 309 crore and Rs 450 crore, respectively.

The total loans and advances outstanding of the companyas at September 30, 2010 were Rs 5,272.98 crore and totaldisbursements for the six months ended September 30, 2010 andFiscal Year 2010 were Rs 1,751.83 crore and Rs 3,795.51 crore,respectively.