Tata Power to raise $250 million in FCCBs

Tata Power, India's largest private power utility,  plans to raise $250 million through issue of foreign currency convertible bonds (FCCBs).

The company's FCCB issue would be listed on the Singapore Stock Exchange. The issue will also have a green shoe option of raising an additional $50 million.

The FCCBs which will have a coupon rate of 1 to 1.75 per cent would be convertible into the company's shares at a 10 per cent premium over Rs1324 at  at Thursday's close on NSE.

Nomura is the sole underwriter to the issue and is also acting as its book runner.

The company says it intends to use the proceeds from the issue for capital expenditure on its existing power plants, projects under execution and other project plants of the company (including projects undertaken through its subsidiaries).

The company had in July raised global depository receipts (GDRs) through which it  netted $335 million of which each GDR represents one equity share of a nominal value or Rs10 per equity share of the company. The company issued 14,838 GDRs and each of  which had been priced at $22.577 (reference exchange rate Rs48.27 ) as per relevant pricing guidelines for GDRs.