India's L&T Shipbuilding sets terms for 25 bln rupees bond sale

MUMBAI Oct 19 (Reuters) - India's L&T Shipbuilding has finalised terms for its 25 billion rupees ($470.59 million) dual-tranche bond sale and has picked two arrangers, two sources with direct knowledge of the plans said on Friday.

The unit of Larsen & Toubro will raise 12 billion rupees through 5-year bonds with a call option after the third and fourth years at 8.95 percent, the sources said.

Axis Bank and HDFC Bank are the arrangers to this tranche, with 6 billion rupees each, they said.

The shipbuilder will sell 13 billion in longer tenure 15-year bonds with 11- to 15-year separately tradable and redeemable principal parts (STRPP), and a call option after the 10th year at 9.10 percent.

Axis Bank is the sole arranger for this tranche.

The bonds are locally rated AAA (SO) on the back of a guarantee from parent Larsen & Toubro. ($1 = 53.1250 Indian rupees) (Reporting by Archana Narayanan)