Tata Steel has successfully issued dual tranche Reg S issuance of $1.5 billion of unsecured bonds in the international markets. The issue comprises $500 million 4.85% Unsecured Bonds due on January 31, 2020 and $1 billion 5.95% Unsecured Bonds due on July 31, 2024 by Abja Investment Company, a wholly owned subsidiary of Tata Steel incorporated in Singapore.
The issue is guaranteed by Tata Steel Limited. The bonds are rated ‘BB+’ by Fitch and ‘BB’ by S&P and will be listed on the Frankfurt Stock Exchange.
Road shows were organized simultaneously in Hong Kong, Singapore and London and on the back of overwhelming investor response the transaction was launched on July 24. By the time books closed at the end of the day, the peak order book was $11 billion across tranches.
The tremendous response enabled the issue to be priced about 50 bps tighter than the initial price thoughts on the both the tranches. The deal was distributed 59% into Asia and 41% into EMEA and others to a wide number of long term buy-and-hold institutional investors, banks and private banks.
| Company Name | CMP |
|---|---|
| Tata Steel | 187.15 |
| JSW Steel | 1223.65 |
| Steel Authority | 168.00 |
| Jindal Stainless | 692.50 |
| APL Apollo Tubes | 1788.70 |
| View more.. | |
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