Tata Steel to raise USD 2bn in equity, debt

Tata Steel to raise USD 2bn in equity, debt Tata Steel to raise USD 2

Tata Steel is in talks with investors to raise Rs 50 bn rupees (USD 1.1 bn) in equity and an equal amount in debt, the DNA newspaper reported on Monday, citing unnamed sources.

The world's eighth-largest steel maker will first dilute equity and then raise debt, it said.

"The method has not been finalised, it's still on the table, but a non-convertible debentures issue or bond sale would be the preferred route," the paper said.

A company spokeman said he could not immediately comment on the report.

Last month, Tata Steel had said it had a gross debt of USD 12.9 billion, which it aimed to cut by USD 2 billion in the medium term.

In November, Tata Steel issued USD 546.9 million worth of new convertible bonds in exchange for USD 493 million of securities as part of a plan to reduce costs and ease repayment obligations. Earlier in the year, it raised USD 500 million by listing global depositary receipts on the London Stock Exchange

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