Tata Power Company Ltd plans to raise Rs 1,500 crore through non-convertible debentures having a coupon rate of 10.75 per cent. But a significant feature of the NCDs is that they would have a maturity period of 60 years!

In a communication to the stock exchanges, Tata Power said that it has decided to issue unsecured, subordinated, listed, rated securities in the form of non-convertible debentures (NCDs) of Rs 1,500 crore.

They would have a maturity of 60 years. There would be call option with the company which can be exercised at the end of 10 years from the deemed date of allotment and at the end of every year thereafter. The coupon (which may be deferred at TPCL's option) on the debentures is 10.75 per cent per annum payable semi-annually, with a step-up provision if the NCDs were not called after 10 years.

The NCDs rank senior only to the share capital of the company and they were rated-AA/stable by Crisil Ltd and CARE AA by CARE Ltd, the communication said.

(This article was published on August 17, 2012)
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