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L&T to raise Rs 1 bn in 10-year inflation-linked bonds

Larsen & Toubro is planning to raise Rs 1 billion in 10-year inflation-linked bonds at 1.65 per cent over wholesale price inflation, a source said.

, ET Bureau|
May 16, 2013, 04.16 AM IST
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MUMBAI: Infrastructure major Larsen & Toubro (L&T) is planning to raise Rs 100 crore in 10-year inflation-linked bonds at 1.65% over wholesale price inflation, a move that comes after the Reserve Bank of India announced on Wednesday that it will issue the first tranche of inflation-indexed bonds on June 4.

L&T would be the first company to introduce these bonds in the Indian markets for institutional investors.

“These bonds will be an attraction with foreign investors since they will have the advantage of good credit quality and a natural hedge against inflation,” said a bond dealer with a small-sized brokerage.

The coupon would be linked to the 12 month average wholesale inflation rate, sources in involved in the issue said.

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