Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

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
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.

Also Read

Bharat Bond ETF is here; What is a bond ETF?

Are Indian bonds defying rate transmission?

Bharat Bond ETF opens for subscription

View: The real problem with electoral bonds

Bond with USD liabilities, not necessarily with the bond

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service