OREANDA-NEWS. June 02, 2011. India’s largest integrated private power utility announced that rating agency CARE assigned ‘CARE AA’ rating to its perpetual debenture issue, reported the press-centre of Tata.

The company’s perpetual debenture issue of Rs1,500 crore has a call option after 10 years from the issue date and every year thereafter. There is a step up of 100 bps after 10 years. The coupon (payable semi-annually) has an optional deferral clause which is linked to non payment of dividend, with a look-back period of six months. There is a dividend stopper clause that restricts dividend payment on shares in case the coupon payment on the perpetual debentures is deferred.

Considering the terms of the issue, CARE would accord 50 per cent equity content to this document.