Tata Steel mulls rare high-yield perpetual bond

Tata Steel considers issuing a rare high-yield perpetual bond of at least $500 million. The deal could launch in the first quarter of this year.

Indian steel company Tata Steel is considering issuing a perpetual bond to raise at least $500 million sometime in the first quarter of 2011.

If it goes ahead, Tata Steel could become the first Asian issuer in recent times to tap the market with a high-yield perpetual bond. So far, Asian perpetuals have been issued by investment grade names such as Hutchison Whampoa, Cheung Kong Infrastructure CKI and Noble Group. It would also be a rare US dollar bond from Tata Steel.

The company is rated BB- by Standard Poor’s and bankers say that its perpetual could be rated two to three notches lower at B or B-. Perpetual bonds are usually...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222