Tata Power arm raises Rs 2,700 cr

Tata Power today said its wholly-owned arm Coastal Gujarat Power Ltd has raised Rs 2,700 crore via issuance of non-convertible debentures on private placement basis.

The proceeds will be used for general corporate purposes of Coastal Gujarat Power, including refinance of foreign currency debt, funding of hedge unwinding costs relating to refinancing of foreign currency debt, capital expenditure, and augmentation of working capital, Tata Power said in a BSE filing.

Coastal Gujarat Power Limited (CGPL) issued and allotted the non-convertible debentures (NCDs) in two series {Series I NCOs amounting Rs 1,700 crore for a tenor of 5 years and Series II NCOs amounting Rs 1,000 crore for a tenor of 1O years), the filing said.

"The NCDs have been rated AA (SO) by CARE Limited and India Ratings Limited. The Series I NCDs will carry a coupon rate of 9.70 per cent and the Series II NCDs will carry a coupon rate of 9.90 per cent, both payable annually," it said.

The debt obligations of CGPL under the NCDs are guaranteed by the company, it said.

Shares of Tata Power rose by 5.51 per cent to end at Rs 75.65 on BSE.