Tata Power on Monday said its arm CGPL - which runs Mundra power plant - has raised Rs 350 crore by issuing non-convertible debentures (NCDs) on private placement basis. "Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of the Company, has successfully issued and allotted Unsecured, Rated, Listed, Taxable, Guaranteed, Redeemable, Non-Convertible Debentures for an amount of Rs 350 crore on private placement basis issued for a tenor of 3 years," a regulatory filing said.
The NCDs have been rated AA (CE) by India Ratings & Research and will carry a coupon rate of 8.55 per cent, payable annually. The debt obligations of the CGPL under the NCDs are guaranteed by the company, the filing said.
The proceeds of the NCDs will be utilised towards general corporate purposes of CGPL, including refinance of existing debt, capital expenditure, and augmentation of working capital.
It will not be used for any purpose for which bank finance is not permitted by the Reserve Bank of India, including investments in capital markets, real estate and onlending.
These NCDs have been issued on a private placement basis through a private placement offer letter cum information memorandum, it added.
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