Our Bureau

Mumbai, Nov. 6 Tata Power said on Friday it would raise up to $300 million through foreign currency convertible bonds carrying a coupon rate of one per cent to 1.75 per cent.

According to a company statement, the bonds are convertible at 10 per cent premium over the closing price of the company’s shares on the NSE on November 5.

The bonds are expected to be listed on the Singapore Stock Exchange. Nomura is the underwriter and book runner to the offering.

Tata Power will use the money to fund capital expenditure at its existing power plants as well as those under way, and at other projects, including those undertaken through its subsidiaries.

The company has 5,170 MW projects at various stages of implementation. These include the 4,000 MW ultra mega power plant at Mundra, 1,050 MW Maithon project being set up in a joint venture with Damodar Valley Corporation and the 120 MW Jojobera plant. In addition, it plans to create distribution infrastructure in the Mumbai licence area.

Of the Rs 23,600 crore needed for these projects, the company has sewn up Rs 16,100 debt and Rs 1,750 crore from a GDR issue. The bonds sale will help bridge a large part of the difference.

The Tata Power scrip was down 3.84 per cent to Rs 1,271.50 on Friday.

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