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L&T Metro Hyderabad raises Rs.13119 crore by selling bonds, commercial papers

News: According to Economic Times, L&T Metro Hyderabad Ltd has raised Rs.13119 crore by selling bonds and commercial papers (CPs) in one of the largest fund raising in a single day. They yielded in the range of 6.4% to 6.7% 

Views: L&T aims to reduce losses on Hyderabad Metro by reducing its funding cost by at least 200 bps by replacing high cost bank loans with the new debt.  L&T is working on restructuring of capital allocation for Hyderabad Metro project as heavy losses have been incurred due to much lower ridership amid lockdowns and pandemic. Any further positive development on this front would act as major trigger for L&T, which is focusing on asset monetisation to further strengthen the balance sheet and improve return ratio.

Impact: Positive