Tata Power plans to raise about Rs 1,300 crore
The company plans to raise about Rs 1,300 crore (about $400 million) by issuing bonds abroad. It has appointed Deutsche Bank, Goldman Sachs and UBS as joint bookrunners. The funds will be used to acquire coal assets abroad. The company has been scouting for coal assets in South Africa, Indonesia and Australia.
In a statement, the company said, "The company plans to expand generation capacity through new power projects or acquisitions in the coming years. These funds may be used to secure further long-term coal supplies by investing in coal mines or assets outside India, as well as for repayment of existing loans." The company plans to raise money through 60-year bonds that are non-callable for the first five years. S Ramakrishnan, Executive Director (finance), Tata Power said, "This long-term financing enhances our ability to achieve our strategic goals of securing sustainable sources of supply for our rapidly-growing power generation base." The company said the fundraising will happen through a wholly-owned overseas subsidiary of Tata Power.
Contact: TATA Power
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