Tata Steel to raise $2b in equity, debt
Tuesday, 15 December 2009
MUMBAI, Dec 14 (Economic Times): India's Tata Steel is in talks with investors to raise 50 billion rupees ($1.1 billion) in equity and an equal amount in debt, the DNA newspaper reported on Monday, citing unnamed sources. The world's eighth-largest steel maker will first dilute equity and then raise debt, it said.
"The method has not been finalised, it's still on the table, but a non-convertible debentures issue or bond sale would be the preferred route," the paper said. A company spokeman said he could not immediately comment on the report. Last month, Tata Steel had said it had a gross debt of $12.9 billion, which it aimed to cut by $2 billion in the medium term.
In November, Tata Steel issued $546.9 million worth of new convertible bonds in exchange for $493 million of securities as part of a plan to reduce costs and ease repayment obligations.
"The method has not been finalised, it's still on the table, but a non-convertible debentures issue or bond sale would be the preferred route," the paper said. A company spokeman said he could not immediately comment on the report. Last month, Tata Steel had said it had a gross debt of $12.9 billion, which it aimed to cut by $2 billion in the medium term.
In November, Tata Steel issued $546.9 million worth of new convertible bonds in exchange for $493 million of securities as part of a plan to reduce costs and ease repayment obligations.