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.