Debt

Debt financing

L&T Metro Hyderabad to raise Rs.13,600-Cr to cut funding cost

Economic Times  

L&T Metro Rail that runs metro trains in Hyderabad is raising up to INR 13,600 crore through bonds and commercial papers. The loss-making company aims to reduce its funding cost by at least 200 basis points by replacing high-cost bank loans with the new debt. It aims to sell non-convertible debentures (NCDs) up to INR 8,600 crore with maturities up to five years, and commercial papers up to INR 5,000 crore in tranches spread across maturities up to one year. The NCDs will likely have corporate guarantee from L&T and may offer 6.30-6.60% annual returns