New Delhi, Jul 20 (PTI) Tata Power on Monday said its arm CGPL - which runs Mundra power plant - has raised Rs 350 crore by issuing non-convertible debentures (NCDs) on private placement basis.

"Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of the Company, has successfully issued and allotted Unsecured, Rated, Listed, Taxable, Guaranteed, Redeemable, Non-Convertible Debentures for an amount of Rs 350 crore on private placement basis issued for a tenor of 3 years," a regulatory filing said.

Also Read | Sikkim Govt Imposes Complete Lockdown in State From July 21 to July 27 Amid Rising COVID-19 Cases.

The NCDs have been rated AA (CE) by India Ratings & Research and will carry a coupon rate of 8.55 per cent, payable annually. The debt obligations of the CGPL under the NCDs are guaranteed by the company, the filing said.

The proceeds of the NCDs will be utilised towards general corporate purposes of CGPL, including refinance of existing debt, capital expenditure, and augmentation of working capital.

Also Read | OnePlus Nord Smartphone, OnePlus Buds Launching Tomorrow in India; Prices, Features & Specifications.

It will not be used for any purpose for which bank finance is not permitted by the Reserve Bank of India, including investments in capital markets, real estate and onlending.

These NCDs have been issued on a private placement basis through a private placement offer letter cum information memorandum, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)