Mumbai, Dec 14: Tata Steel is in talks with investors to raise 50 billion rupees ($1.1 billion) in equity and an equal amount in debt, reported on Monday, citing unnamed sources.
The world’s eighth-largest steel maker will first dilute equity and then raise debt, it said.
“The method has not been finalised, it’s still on the table, but a non-convertible debentures issue or bond sale would be the preferred route,” said.
A company spokeman said he could not immediately comment on the report.
Last month, Tata Steel had said it had a gross debt of $12.9 billion, which it aimed to cut by $2 billion in the medium term.
In November, Tata Steel issued $546.9 million worth of new convertible bonds in exchange for $493 million of securities as part of a plan to reduce costs and ease repayment obligations. Earlier in the year, it raised $500 million by listing global depositary receipts on the London Stock Exchange.
–Agencies