Tata Power ups fund raising plan to secure coal supply

Tata Power plans to raise $450 million by issuing corporate hybrid securities, revising its target upwards from $300-400 million announced on April 18.

The proceeds could be used for securing long-term coal supplies and repaying debt.

The decision to set higher target might have stemmed from bullish market conditions, according to analysts. Tata Power’s subsidiary, Bhira Investments, would raise the fund worth $450 million and offer 8.5% rate of interest, payable every six months.


Tata Power’s Executive Director S Ramakrishnan had said that the long-term financing would enhance company’s ability to secure sustainable supply sources for its growing power generation base.

The company has over 3,100 MW power generation capacity through thermal, hydro, solar and wind energy sources. Work on adding 5,500 MW capacity is in progress.