Tata Power launches FCCB offering of US$ 200 million
February 9, 2005

The Tata Power Company Limited, India’s largest private power company, has launched a US$ 200 million, 5 year Foreign Currency Convertible Bond (FCCB) issue carrying a 1 per cent coupon. The offering is subject to fulfillment of certain conditions to the closing of the issue.

The bonds are convertible at 50 per cent premium over the closing share price of February 8, 2005 and bear a yield to maturity of 3.88 per cent compounded semi-annually.

These bonds are expected to be listed on the Singapore Stock Exchange. JP Morgan is the sole underwriter and bookrunner to the offering. The offering was launched after the stock exchange trading hours on February 8, 2005.

Tata Power intends to use the aggregate net proceeds from this issue for capital expenditure in existing units, new projects and acquisitions.