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Tata Steel issues dual tranche debut bond offering of $1.5 billion

25 Jul 2014 Evaluate

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.

Tata Steel Share Price

187.15 2.00 (1.08%)
02-Jul-2026 16:59 View Price Chart
Peers
Company Name CMP
Tata Steel 187.15
JSW Steel 1223.65
Steel Authority 168.00
Jindal Stainless 692.50
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