Tata Steel to pay $471 million to FCCBs redemption

MUMBAI: Tata Steel today said it will pay $471.17 million (around Rs 2618.3 crore) to holders of its foreign currency convertible bonds (FCCBs) that are maturing on September 5.

The company had issued these convertible bonds in 2007 and bondholders were supposed to give notice of conversion into shares by August 6.

However, the steel maker said in a filing to the BSE that it did not receive any such notice by the given time and therefore, it will be paying $471.17 million as principal along with an interest of $1.92 million against the bonds for the last six months.

The company, however, did not disclose the conversion price of the bonds.

"We would like to bring to your notice that the company is paying off the liability due under CARS, to the extent of $471,166,058 for the principal amount, along with the accrued interest of $1,915,305.60 for the last six months on due maturity date," Tata Steel said in the filing.

CARS stands for Comprehensive ratings for CDFI (community development financial institutions) investments and it rates loan funds (non-bank CDFIs) that invest in communities and create opportunities for low-income and low-wealth people.

Shares of Tata Steel today closed at Rs 392.20 apiece on the BSE, down 0.66 per cent from their previous close.