Tata Power firm Bhira Investments redeems $450 million loans

NEW DELHI: Tata Power's wholly-owned subsidiary Bhira Investments Ltd today said it has redeemed USD 450 million (approximately Rs 2,700 crore) worth of loans to replace them with less costlier debt options.

"Bhira Investments Limited has redeemed USD 450 million Fixed to Floating Rate Subordinated Notes on September 2, 2014," Tata Power Company Ltd said in a stock exchange filing.

The redemption has been financed by way of loans raised by Bhira for this specific purpose, it said.

"The redemption of hybrid notes and replacing it with cheaper funding option will lead to substantial interest savings for the Tata Power Group and this is in line with the company's strategy to optimise its funding sources and lowering interests costs," Anil Sardana, CEO and MD Tata Power had earlier said.

Tata Power scrip was trading at Rs 90.05, up 1.07 per cent, on the BSE in the the afternoon.