Tata Steel looks to raise ₹3,000 crore from fresh bond issue after one-year hiatus: Report

Tata Steel is also offering a variety of tenors such as three-year, five-year, seven-year or even 10-year ones, and would be finalising one or two of them

Tata Steel Ltd. will tap into the corporate bond market after an almost year-long hiatus to raise ₹3,000 crore, news agency Reuters reported, citing unnamed sources.

A view shows the last working blast furnace of Tata Steel Port Talbot steel production plant at Port Talbot, on the last day of its functioning, in Wales, Britain.(Reuters)

The issue will likely be completed before this month's end, and for this, the company is already in talks with merchant bankers and investors, according to the report.

It also offers a variety of tenors such as three-year, five-year, seven-year, or even 10-year ones, and would be finalising one or two of them, based on the levels that they get, the report read.

This comes after India Ratings upgraded the company's bonds to the highest grade of AAA from AA previously.

The last time Tata Steel tapped the bond market was in March 2024, when it raised ₹2,700 crore through three-year bonds with a coupon of 7.79%.

"The ratings factor in the strategic linkages between TSL and its sponsor, Tata Sons Private Limited and the strong financial flexibility of Tata Sons," the report cited India Ratings as saying in a February 11 note.

The upgrade also came because of the likelihood of losses reducing at Tata Steel's UK operations over the next two financial years and eventual profitability, according to the ratings agency.

At the moment, Tata Steel has outstanding bonds worth over ₹12,800 crore, of which ₹670 crore is due to mature next month.