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Tata Steel announces successful dual tranche USD bond offering of US$ 1.3 billion

Mumbai, January 19, 2018

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, 2023 and USD 1 billion 5.45% Unsecured Bonds due on January 24, 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 Kong and on the back of overwhelming investor response, the transaction was launched on Jan 18, 2018. By the time books closed at the end of the day, the peak order book was in excess of USD 7 bn across tranches.  The tremendous response enabled the issue to be priced about 42 bps tighter 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.

Mr. 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”.  

About Tata Steel

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on March 31, 2017. It is a geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Group recorded a consolidated turnover of US $18.12 billion (INR 117,420 crore) in FY17. Tata Steel Group is spread across five continents with an employee base of nearly 70,000 employees as of March 31, 2017. Having bagged the Deming Application Prize and Deming Grand Prize for continuous improvement in 2008 and 2012 respectively, Tata Steel has now been recognised as the global ‘Industry Leader’ in ‘Steel category’ by Dow Jones Sustainability Index (2015). Besides being a member of the World Steel Climate Action Programme, Tata Steel has also been felicitated with several awards including the Prime Minister’s Trophy for the best performing integrated steel plant for 2015-16, ‘Best Risk Management Practice’ in the metals and mining category at the India Risk Management Awards 2017, ‘Best-in-class Manufacturing’ award from TIME India (2016) and the ‘Most Ethical Company’ award from the Ethisphere Institute (2016), IIM Sustainability Award (2015), among several others.

Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.

This announcement does not constitute or form part of an offer or solicitation to sell, issue or subscribe for any securities of the Issuer or Tata Steel in the United States or any other jurisdiction in which such offer or solicitation for sale would be unlawful. The securities referred to herein have not been, and will not be, registered under the Securities Act or any state securities laws of the United States or elsewhere and may not be offered or sold in in the United States absent registration or an exemption from registration under the Securities Act and applicable state securities laws. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. No money, securities or other consideration is being solicited by these materials or the information herein and, if sent in response to these materials or the information contained herein, will not be accepted.