Tata Steel announced that they are considering a 30 billion rupee (USD 346 million) three-, five- and ten-year bond issue and is currently in discussions with banks on pricing. Care Ratings and India Ratings assigned AA+ credit ratings to these unsecured bonds.
The funds to be raised are planned to be used largely for debt repayments. Tata Steel had decided to issue rupee-denominated bonds in May with board approval to raise capital for a Singapore subsidiary and to restructure their UK operations.
The company is authorized to issue a total of 30 billion rupees (USD 346 million) worth of non-convertible bonds in one or more tranches through private placement in the fiscal year ending March 31.
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