Tata Power has come out with a $250 million Foreign Currency Convertible Bond (FCCB) issue with an option to add $50 million more. The tenure of the bond is 5 years and 1 day and will be subject to fulfillment of certain conditions to the closing of the Issue.
The bonds are convertible at 10% premium over the closing price of the company’s shares on NSE on November 5, 2009 (Rs 1323.75 per share). The yield to maturity on the bond is 3.5% a year on a semi-annual basis and will be listed in Singapore.
Nomura is the sole underwriter and bookrunner to the offering.
Tata Power will use these funds for capital expenditure of its existing power plants, projects under implementation and other project plants of the company, including projects undertaken through its subsidiaries.