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.
