Hyderabad, India (Metro Rail News): Larsen and Toubro Metro rail, which runs metro trains in Hyderabad, is getting a loan of Rs. Thirteen thousand six hundred crores (13,600) in bonds and commercial papers. This year, it is one of the most extensive local debts fundraisings in the infrastructure sector. It is because L&T is running in losses, and it wants to compensate by reducing its funding cost by 200 points by replacing high-cost bank loans with new debt. It aims to sell non-convertible debentures worth Rs.8,600 crore with maturities up to five years and commercial papers up to Rs.5,000 crore in tranches spread across maturities for up to a year.
SBI capital market is also helping the L&T metro rail project sell bonds and commercial papers, but the company is still silent on the matter. NCDs will also be having a corporate guarantee from L&T that offer 6.30-6.60% of the annual returns. Those should be rated AAA (CE) by providing rates to
SBI Capital Market is helping L&T Metro Rail (Hyderabad) sell the bonds and commercial papers, but still, the company is silent on the matter.
The NCDs will be having a corporate guarantee from Larsen and Toubro (L&T) and may offer 6.30-6.60% annual returns. Those should be rated AAA (CE) by rating company Crisil, which provided such a provisional rating about two weeks ago. The final rating is expected anytime soon.
Credit enhancement, or CE, is an additional comfort for lenders/investors for timely repayments. About two weeks ago, rating company Crisil already provided such a provisional rating.