PANAJI: Engineering giant Larsen & Toubro -promoted L&T Finance Ltd today said they would be able to draw Rs 1,000 crore through their
first-ever issue of redeemable non-convertible debentures (NCDs).

The issue, which opened on August 18, is offering 50 lakh secured NCDs at Rs 1,000 each, totalling to Rs 500 crore, with an option to raise an additional Rs 500 crore if the subscription is over subscribed.

"Looking at the response we have received during the initial days, we are sure to oversubscribe and sell Rs 1,000 crore worth of NCDs," Suneet K Maheshwari, Chief Executive, L&T Infrastructure Finance Co Ltd, told PTI here.

The issue, which offers interest up to 10.50 per cent on the maturity period of 120 days, closes on September 4.

"We are offering fairly attractive rates and giving liberty to the customer to sell the debenture and get back the money," Maheshwari said.

The company will use the funds raised through the issue for its various financing activities, including lending and investment, business operations, capital expenditure and working capital requirement.

The 1994-born finance firm is committed to ensure that there is ample liquidity for the investors, he said, adding the issue targets conservative investors.