Tata Steel, one of the leading steel makers in the world, announced a successful dual tranche Reg S issuance of USD 1.5 billion of unsecured bonds in the international markets. The issue comprises USD 500 million 4.85% unsecured bonds due on Jan. 31, 2020 and USD 1 billion 5.95% unsecured bonds due on July 31, 2024 by Abja Investment Co Pte (the “issuer”) a wholly owned subsidiary of Tata Steel incorporated in Singapore. The issue is guaranteed by Tata Steel. The bonds are rated BB+ by Fitch and BB by S&P and will be listed on the Frankfurt Stock Exchange.
Koushik Chatterjee, group executive director (finance and corporate) said “This is Tata Steel’s debut US Dollar bond issuance and forms part of the Company’s long term financing strategy to raise capital internationally. The proceeds of the above fund raising will be deployed as per the strategic plan of the Company including off shore investment. It was heartening to get such an enormous response from high quality investors across Asia, Europe and Middle East. The successful bond issue enables the Company to diversify the investor base, lengthen maturity profile and optimise the financing and capital structure."
