22 March 2005 – LAWFUEL – The Law News Network – Herbert Smith recently advised The Tata Power Company Limited (Tata Power), India’s largest private sector power company, on raising $200 million through a five-year foreign currency convertible bond issue, carrying a 1% coupon.
The deal was negotiated and signed on an accelerated basis (30 hours from being mandated) and closed less than three weeks later. This helped the issuer to capitalise on a 12% rally in its share price, a credit rating upgrade for India and Tata Power, together with a positive market sentiment globally.
The bonds are listed on the Singapore Stock Exchange, with JP Morgan acting as sole underwriter and bookrunner to the offering. Tata Power intends to use the proceeds from the issue for capital expenditure in existing units, new projects and acquisitions.
Martina Asmar led the Herbert Smith team advising Tata Power on this transaction. She was assisted by Steven Dalton, Carla Sheehy and Graeme Baldwin.
Martina Asmar commented:
“We have witnessed a continued upturn in the market in recent months as illustrated by the increasing number of mandates that we have been receiving. This transaction, together with others that we have recently completed, demonstrates the growing international reach of our capital markets practice.”
Linklaters advised JP Morgan.
