Tata Power launches Rs 1,500 cr debenture issue

The country's largest private power producer Tata Power today said it has issued debentures worth Rs 1,500 crore with a view to secure long-term funding for its projects.

"Tata Power has launched an offering of perpetual debentures of Rs 1,500 crore. The mandated joint lead arrangers for the issuance are Standard Chartered Bank and Yes Bank Limited," the company said in a statement.

"This innovative long-term funding with equity features but without the associated economic dilution helps to diversify our financing options," Tata Power Executive Director-Finance S Ramakrishnan said.

The unique features of the debentures are that they are perpetual in nature with no maturity or redemption and are callable only at the option of the company.

Perpetual capital instruments are a form of debt with equity-like features and provide several benefits to issuers. They allow a better balancing of capital structure, enhance financial flexibility, expand the choice of instruments that can be issued to access debt markets and enable diversification in the investor base.