The group’s borrowing costs rose by 2 percentage points due to a breach of a loan covenant breach for not divesting its stake in Gopalpur Port by the end of last year. Failure to list its engineering unit Afcons by June may incur further penalties.
Concerns revolve around the mandatory prepayment clause, including coupon step-ups and utilising proceeds from the monetisation of assets like Afcons and Gopalpur Port.
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Borrowings Via Corporate Bonds Fall In September Quarter outlookindia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from outlookindia.com Daily Mail and Mail on Sunday newspapers.
The debt is held by the Mistry family under Sterling Investment Corp. Pvt Ltd (SICPL), which owns a 9.182% stake in Tata Sons. These bonds were issued in 2021 and had a tenor of three and a half years. The group has sounded out a few large funds and global banks, two sources said.