Date:13/10/2004 URL: http://www.thehindubusinessline.com/2004/10/13/stories/2004101302550200.htm

Back Tata Power raises Rs 600 cr

Our Bureau

MUMBAI: Tata Power has raised Rs 600 crore through private placement of debentures. The debentures were issued at a yield-to-maturity of 7.1 per cent, said a news release from the company.

The company will utilise the issue proceeds for its expansion plans in the power sector, and to lower its cost of capital.

The debentures bear a coupon of 4 per cent for the first two years and thereafter 6 per cent for the remaining tenure, which is nine years.

The door-to-door maturity of the debenture is 11 years. The debenture will be entitled to a redemption premium and will be repaid back-ended, with 30 per cent to be paid in the ninth year, 40 per cent in the tenth year, and 30 per cent in the eleventh year.