Tata Chemicals raises $100 million in US debt market

18 September 2007

Mumbai: Tata Chemicals Ltd raised $100 million (over Rs 400 crore) through private placement in the US in August, a few days before the Reserve Bank of India tightened rules on overseas borrowing.

"We just finished our programme of funding," R Mukundan, executive vice president - chemicals, said.

"We actually raised it just before the caps were put in place. So, for us, it had no impact at all," Mukundan said.

The RBI had tightened rules on foreign borrowing by local firms on August 7, a move analysts had said would raise borrowing costs for the corporates by 1 to 2 percentage points.

The private placement was led by the Bank of America, and the proceeds would be used for purposes including acquisitions, Mukundan said. He, however, did not rule out the possibility of the company requiring further funding.

Meanwhile, Tata Salt has reiterated its commitment to support underprivileged children across the country with their ''Desh Ko Arpan'' programme.