MUMBAI: Larsen & Toubro's shipbuilding arm plans to raise 2,500 crore through bonds to replace existing loans raised for its unit at Kattupalli in Tamil Nadu, sources in the know of the matter .
L&T, which has an established shipbuilding facility at Hazira in Gujarat, has set up an ambitious shipyard-cum-port at Kattupalli at a total cost of 4,700 crore, which has been financed through 80% debt and 20% equity. The refinance may help the company reduce the interest rate by 150-200 basis points, analysts said. L&T Shipbuilding will raise the funds in two tranches of 1,200 crore and 1,300 crore, respectively.
It will raise 1,200 crore through 5-year bonds, which would have a call option after the third and fourth years at 8.95%.
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