Tata Power-led wholly-owned subsidiary Coastal Gujarat Power Limited (CGPL) has successfully issued and allotted Unsecured, Rated, Listed, Taxable, Guaranteed, Redeemable Non-Convertible Debentures (“NCDs”) for an amount of Rs570cr on a private placement basis issued for a tenor of 3 years.
According to the regulatory filing, the NCDs have been rated IND AA(CE)/Stable by India Ratings & Research and will carry a coupon rate of 5.70%, payable annually. The debt obligations of CGPL under the NCDs are guaranteed by the Company.
Tata Power said that the proceeds of the NCDs will be utilised by CGPL towards refinancing of their existing debt, capital expenditure and augmentation of working capital, following applicable laws and regulations. The Issue proceeds will not be used for any purpose for which bank finance is not permitted by the RBI including investments in capital markets, real estate and on-lending.
These NCDs have been issued on a private placement basis through a private placement offer letter cum information memorandum.
On Sensex, Tata Power finished at Rs127.60 per piece up by 2.4%.