Tata Steel Ltd, the largest producer of the alloy in India, is now undertaking plans to raise as much as US$1 billion through the sale of high yield bonds. This was confirmed by three individuals who declined to be named.
The company is now in discussion with banks to facilitate the sale and the banks to manage the sale would be announced next month. The proceeds of the bond sale would be used to refinance loans according to the anonymous sources.
Officially, Charudatta Deshpande, spokesperson of Tata Steel at Mumbai declined to provide any comment on the matter.
Tata Steel is but one of many Indian firms now tapping into overseas markets for funds to be used for either debt refinancing or capital expenditures. The company is also raising money through other means for the completion of its new factory in Odisha. According to data collated by Bloomberg, Tata last sold dollar denominated bonds back in November 2009.
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