July 25, 2008

TATA Steel raises INR 2,000 crore non convertible débentures

TATA Steel Limited has raised INR 2,000 crore, including green shoe option, through a private placement of redeemable non convertible rupee debentures as part of the long term financing plan of. The issue opened with an initial size of INR 750 crore on May 5th and closed on May 6th 2008. The deemed date of allotment for the non convertible rupee debentures is May 7th 2008.

The issue consists of 3 series including a 7 year maturity fixed rate series of INR 620 cores, a 3 year maturity floating rate series of INR 1,090 crore and a 3 year maturity fixed rate series of INR 290 crore.

The non convertible rupee debentures were assigned a rating of AAA (ind) by Fitch Ratings India Private Limited for the aggregate amount of INR 2,000 crore. The rating agency also affirmed the national issuer rating of AAA (ind) for TATA Steel.

An application has been made to list the non convertible rupee debentures on the wholesale debt market segment of the National Stock Exchange. Each debenture carries a face value of INR 1 million and is being issued at par.