"Bhira Investments Limited has redeemed USD 450 million Fixed to Floating Rate Subordinated Notes on September 2, 2014," Tata Power Company Ltd said in a stock exchange filing.
The redemption has been financed by way of loans raised by Bhira for this specific purpose, it said.
"The redemption of hybrid notes and replacing it with cheaper funding option will lead to substantial interest savings for the Tata Power Group and this is in line with the company's strategy to optimise its funding sources and lowering interests costs," Anil Sardana, CEO and MD Tata Power had earlier said.