Mumbai: Tata International Ltd, a global trading arm of the Tata Group, on Thursday raised Singapore $150 million by selling perpetual bonds to investors based in Asia, said two people familiar with the transaction.

“The bonds were raised at 6.65% and most of buyers were institutional investors or private banks," said one of the persons quoted above.

Hong Kong and Shanghai Banking Corp. Ltd (HSBC) was the sole banker to the issue which opened and closed on Thursday.

Perpetual bonds do not have a fixed tenure but the company can buy back the bonds in a predetermined time frame.

In this case Tata International has the option to buy back the bonds at the end of five years or the yield on the bonds could rise by 300 basis points (bps) to 9.65%. On bps is 0.01 percentage point.

“Investor response was strong for the bond. The total demand aggregated to Singapore $1 billion which allowed the company to raise money at 6.65%, much lower than the initial guidance of 7%," said the person quoted above.

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