Tata Power’s wholly-owned subsidiary -- Coastal Gujarat Power (CGPL) has issued and allotted guaranteed, unsecured, non-cumulative, redeemable, taxable, listed, rated, nonconvertible debentures (NCDs) for an amount of Rs 2,700 crore on private placement basis issued in two series (Series I NCDs amounting Rs 1,700 crore for a tenor of 5 years and Series II NCDs amounting Rs 1,000 crore for a tenor of 10 years).
The NCDs have been rated AA (SO) by CARE and India Ratings. The Series I NCDs will carry a coupon rate of 9.70% and the Series II NCDs will carry a coupon rate of 9.90%, both payable annually. The debt obligations of CGPL under the NCDs are guaranteed by the company. The proceeds of the NCDs will be used for general corporate purposes of CGPL including refinance of foreign currency debt, funding of hedge unwinding costs relating to refinancing of foreign currency debt, issue expenses, capital expenditure and augmentation of working capital.
Tata Power is India’s largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.
