Hybrids find favour as Tata Power upsizes deal to $450 million

Tata Power last night priced a warmly received $450 million 60-year non-call-five hybrid at a yield of 8.5%. The initial whisper was at “high 8%” and was tightened to a guidance of 8.5% to 8.75% yesterday morning, with the bonds eventually pricing at the tight end of guidance.

The joint bookrunners Deutsche Bank, Goldman Sachs and UBS guided investors to a $300 million to $400 million print, but upsized the deal to $450 million after receiving a robust order book of $3.5 billion. About half the deal was taken up by private banks and the rest by institutional investors.

Tata Power is the largest private independent power...