Tata steel corporate bond

Tata Steel Ltd. has issued unsecured, subordinate perpetual, hybrid Securities in the form of Non Convertible Debenture. The security is perpetual in nature with no maturity or redemption and is callable only at the option of the firm. The distribution rate has been pegged at 11.8% semi annual with a step up provision if the securities are not called after ten years. Tata Steel is the first non-bank organization to offer corporate hybrid security.
This paper has decent demand in the market especially among the Corporate & individual’s and this paper will fetch benefits to investors who are looking for a high yielding instrument with the objective to hold till maturity. The rate available to the client is superior to rates currently available in the Fixed Deposit domain. The bonds are available in the lot size of Rs. 1 Crore,

The details of the Issue are attached along with Brickworks Credit rating press release for your reference.

As far as the terms of the above mentioned TATA STEEL bonds are concerned, the coupon on the bond is 11.80 semi annual coupon/ step up of 300 bps if call not exercised after 10 years and a clause which enables non payment of interest in a year when no dividends are paid out, however such interest to be accumulated and paid out eventually with some penalty for the delay period.

Thanks & Regards,

Maulik Doshi

DENIP Consultants Pvt. Ltd.