Jan 19: Tata group firm Tata Steel Ltd (TSL) on Friday announced that the company has raised $1.3 billion through issue of unsecured bonds in the international markets.
The transaction was launched on Jan 18, 2018. According to the company, the issue comprises $300 million 4.45% Unsecured Bonds due on July 24, 2023 and $1 billion 5.45% Unsecured Bonds due on January 24, 2028 by Abja Investment Co Pte Ltd, a wholly owned subsidiary of Tata Steel incorporated in Singapore. The bonds are rated BB- by S&P and will b listed on the Singapore Exchange (SGX), the company said.
Commenting on the development, Koushik Chatterjee, ED and CFO of Tata Steel, said, “based on the buoyant trading performance of the existing bonds and strong credit appetite from quality investors, the company launched an innovative bond structure. The success of the issue demonstrates the investor’s confidence in the long term strategy of the company and we are very happy with the quality of the investors in the issue. The proceeds of the bonds will be used to refinance the offshore obligations of the Group, which will help de-risk the balance sheet, enhance financial flexibility, diversify the investor base and improve the overall debt maturity profile.”
Tata Steel shares were trading in red at Rs 748.75, down 0.41% from the previous closing of Rs 751.85, on BSE at 12.33 pm today.