ALSO READThyssenkrupp says must give Tata time to work out UK pensions Tata Steel may close UK pension scheme - union source Tata Steel in focus after signing pact with Liberty House for sale of UK speciality steel biz UK financier makes new offer to take over Tata Steel pension scheme Tata Steel UK says working on solution for British Steel Pension Scheme
Tata Steel board has given its approval for issuing debt securities worth up to Rs 9,000 crore to meet working capital requirements and general corporate purposes.
"The Board of Directors...Based on the review and pursuant to the existing shareholders approval, approved issue of debt securities of up to Rs 9,000 crore in the form either of Non-Convertible Debentures on private placement basis or Foreign Currency or Rupee Denominated Bonds or a combination thereof in one or more tranches," the company said in a filing today.
The funds will primarily be deployed towards re-financing the existing debt, capex and working capital requirements and general corporate purposes.
The development assumes significance as there are media reports saying Tata Steel is planning a one-time settlement of USD 663 million to its UK pensioners under a new scheme called the Regulated Appointment Arrangement.
"The Board of Directors also authorised the Finance Committee of the Board to determine and approve the timing and terms of such issue of securities," the filing said.
"This disclosure is made in compliance with Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015," it added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)