OREANDA-NEWS. March 22, 2011. Tata Steel Limited (the  “Company”) has successfully completed India’s first ever offering of Corporate  Hybrid Securities with an issuance of Rs. 1,500 Crores (USD  332 million). The  Mandated Lead Arrangers for the issuance are J.P. Morgan Securities India  Private Limited and ICICI bank Limited (the “Arrangers”).

The unique features of the securities are that they  are perpetual in nature with no maturity or redemption and are callable only at  the option of the Company. The Distribution rate (which may be deferred at the  Company’s option) on the securities is set at 11.8% p.a., with a step up  provision if the securities aren’t called after 10 years. These securities rank  senior only to share capital of the Company. This provides equity  characteristics to these ‘hybrid’ securities.

Koushik Chatterjee, Tata Steel Limited Group Chief  Financial Officer, said: “The issuance of these perpetual hybrid securities is  an important step in the overall financing strategy and capital structure  management of the Tata Steel Group. As Tata Steel continues to develop and  execute its significant and earnings accretive growth plans, this innovative  long term funding with equity features but without the associated economic  dilution helps to diversify our financing options."