The Press Trust of India has reported that steel major TATA Steel is hitting the markets for a possible Singapore dollar denominated bond sale. Merchant bankers said that “a Singapore dollar denominated Reg S (senior unsecured bonds) transactions may be launched, subject to market conditions, following the investor roadshow.” However, the size of the issue or the coupon range was not immediately known.
The bankers has said the money will be raised by TATA Steel’s wholly-owned subsidiary ABJA Investment Co. Media reports recently stated the Tata group company was to raise USD 1B from overseas markets. Tata Steel was looking to deploy a part of the proceeds in its upcoming project in Odisha and may also pare some high cost debt.
So far 11 Indian companies through 13 issuances have raised USD 7.5B from the overseas markets this year, as rupee funds remain too costly at around 12 to 14%.
