Mumbai: India’s Tata Power has mandated YES Bank and Standard Chartered Bank for a Rs 1500 crore ($333 million) perpetual bond issue, two market sources told Reuters on Tuesday, after it raised $450 million in an overseas offering last month.
The bond will carry a coupon of 11.40% payable semi-annually with a step-up option of 100 basis points after 10 years, the sources said.
CRISIL has assigned its ‘AA/Positive´ rating to this offering, which will get 50% equity treatment for ratings purposes.
It will also be the fourth hybrid offering from the Tata Group.
Earlier this month, affiliate Tata Steel raised Rs 775 crore from a repeat issue of perpetual bonds, following up a Rs 1500 crore inaugural perpetual bond issue in mid-March.