Mumbai, Jan. 19: Tata Steel Limited is pleased to announce a successful dual tranche Reg S issuance of USD 1.3 billion of unsecured bonds in the international markets. The issue comprises USD 300 million 4.45% Unsecured Bonds due on July 24, 2023and USD 1 billion 5.45% Unsecured Bonds due on January24, 2028 by Abja Investment Co Pte Ltd, (the �Issuer�), a wholly owned subsidiary of Tata Steel Limited (�Tata Steel�) incorporated in Singapore. The bonds are rated BB- by S&P and will be listed on the Singapore Exchange (SGX).
Road shows were organized simultaneously in Dubai, Singapore, London and Hong Kongand on the back of overwhelming investor response, the transaction was launched on Jan18, 2018. By the time books closed at the end of the day, the peak order book was in excess of USD 7bn across tranches. The tremendous response enabled the issue to be priced about 42 bpstighter than the initial price thoughts on both the tranches. The deal was distributed to a wide number of long term buy-and-hold institutional investors, banks and private banks across regions.
Koushik Chatterjee, ED and CFO of Tata Steel said �Based on the buoyant trading performance of the existing bonds and strong credit appetite from quality investors, the company launched an innovative bond structure. The success of the issue demonstrates the investor�s confidence in the long term strategy of the Company and we are very happy with the quality of the investors in the issue. The Proceeds of the bonds will be used to refinance the offshore obligations of the Group, which will help de-risk the balance sheet, enhance financial flexibility, diversify the investor base and improve the overall debt maturity profile. The completion of the refinancing also marks an important step forward to create a sustainable financial structure in preparation of the proposed joint venture in Europe�.
