The financing unit of the Indian infrastructure major L&T is planning to raise more than Rs 500 crore through a second round of -saving long-term infrastructure bonds.

The issue by the L&T Infrastructure Finance Company will open on January 10 and it will close on February 11 and will be listed on the Bombay Stock Exchange. The company had raised Rs 530 crore through first tranche of bonds last month. The company is aiming to raise a total of Rs 1,100 crore in the current fiscal year.

YM Deosthalee, chairman and managing director of L&T Finance Holdings said, "Compared with the first tranche, rate of interest rate is slightly lower in the second tranche, which is an indication that interest rates are peaking out." He was speaking at the Holdings at the launch of second tranche of tax-saving bonds.

Under the second issue, the company is offering three redemption opportunities for bond holders. The first at the end of five years, the second at the end of seven years and the last at the end of ten years.

The company will use the funds to for infrastructure financing as it is a growing sector and the company expects strong growth in the next 5-10 years in infrastructure projects.

ICICI Securities, JM Financial Consultants and Karvy Investor Services are the lead managers for the issue by the L&T unit.