Engineering major Larsen & Toubro group firm L&T Finance's Rs 1,000 crore debenture issue closed on Friday with full subscription.

"The Rs 1,000 crore non convertible debenture (NCD) issue of the company has been fully subscribed. The response from the market has been very good," a senior official of L&T Finance said.

The NCD is a debenture that cannot be converted into equity. The issue had opened on August 18.

Up to 35 per cent of the issue size was reserved for retail investors, 35 per cent for qualified institutional buyers and the rest 30 per cent for non-institutional investors.

"All the three segments have been fully subscribed," the official said.

However, the actual break-up figure would only be known by Monday since it is with the registrar, he added.

L&T Finance along with L&T Capital Holdings had come to the market with 50 lakh secured non-convertible debentures at Rs 1,000 each, totaling to Rs 500 crore. The issue had an option to raise an additional Rs 500 crore if the subscription is oversubscribed.

The company proposes to list debentures on the National Stock Exchange (NSE).

Standard Chartered Bank, JM Financial Consultants and SBI Capital Markets were the lead book managers of the issue.

Sharepro ServiCes (India) was the registrar.

The NCD issue was with various investment options and yield on redemption of up to 10.5 per cent.

L&T Finance's NCD issue was rated AA+ by rating agency CARE and LAA+ by ICRA, indicating a low credit risk.