India’s Tata Power subsidiary to redeem $450 million subordinated notes

By Tali Rackner

Norfolk, Va., Aug. 1 – Tata Power Co. Ltd. informed the Bombay Stock Exchange that its wholly owned subsidiary Bhira Investments Ltd. exercised its right to call its $450 million fixed-to-floating-rate subordinated notes.

The notes will be redeemed on Sept. 1. The redemption will be funded with loans raised by Bhira.

“The redemption of the hybrid notes and replacing it with a 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 optimize its funding sources and [lower] costs,” Tata Power chief executive officer Anil Sardana said in the notice.

Tata Power is a power utility based in Mumbai, India.

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