Engineering and construction major Larsen & Toubro Ltd has opened its accelerated $200-million foreign currency convertible bonds (FCCB) offering at a face value of $100,000 per bond.
The proposed bonds, which carry a coupon of 3.5% and a tenor of 5 years and one day, are convertible into equity shares of the company. The bonds will be listed on the Singapore Exchange Securities Trading Ltd, said the company in a statement.
The company announced on Thursday that it raised $600 million (Rs 2,400 crore) selling shares and bonds to institutional investors.
The company has outlined capex spend of Rs1500 crore till March 2010, including investments in growth projects such as expansions in railways, defense and other capital intensive businesses. Only last month, L&T Finance, its arm, also agreed to buy Cholamandalam DBS Finance’s CHLA asset management company.