Tata Power Company’s wholly owned subsidiary - Bhira Investments, has exercised its right to redeem the $450 million Fixed to Floating Rate Subordinated Notes, consequent to the changes to the treatment in the rating methodology. It has issued a notice for early redemption to the Trustee on July 31, 2014. The record date for the redemption is proposed to be at September 01, 2014. The redemption will be financed by way of loans raised by Bhira, which is also being concurrently taken care of.
The company had earlier issued $450 million Fixed to Floating Rate Subordinated Notes, in April 2011. The Notes were secured by a Corporate Guarantee issued by the company and were eligible for 50% equity credit by rating agencies.
Tata Power is India’s largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.
| Company Name | CMP |
|---|---|
| NTPC | 398.70 |
| Tata Power | 442.80 |
| Adani Power | 229.90 |
| Power Grid Corp | 319.30 |
| Torrent Power | 1733.40 |
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