“Tata Steel has raised Rs 2,000 crore including greenshoe option through private placement of redeemable non-convertible rupee debentures,” the company said.

The issue, of the world’s sixth largest steel maker, which closed on May 6, opened with an initial size of Rs 750 crore and the deemed date of allotment for the debentures was May 7.  An application has been made to list the debentures on the wholesale debt market segment of NSE, said Tata Steel adding that each debenture carries a face value of Rs 10 lakh.

The debentures were assigned a rating of AAA (Ind) by Fitch Ratings India Private Limited for the aggregate amount of Rs 2000 crore. The rating agency also affirmed the national issuer rating of AAA (Ind) for the company. Citigroup was the sole underwriter for Tata Steel’s bond sale. Tata Steel,  intends to use the funds for rupee debt refinancing.

Tata Steel raised rupee-denominated bonds in three tranches, in a deal that was increased from an initial size of Rs 750 crore. The firm raised Rs 620 crore in a seven-year fixed rate note at a coupon of 10.2 per cent, and Rs 290 crore via a three-year fixed-rate note at a coupon of 9.8 per cent, according to a term sheet seen by Reuters.