Tata Communications to Consider Raising Funds via Non-Convertible Debentures

Tata Communications' board will evaluate a proposal to raise funds using Non-Convertible Debentures (NCDs) on July 18, 2024. This is part of the company's debt management strategy aimed at maintaining financial stability, effective cost management, and risk minimization. The framework includes an even debt maturity schedule and diverse lender access.

New Delhi, Jul 12 (PIT) - Tata Communications' board will evaluate a proposal to raise funds using Non-Convertible Debentures (NCDs) on July 18, 2024.

As part of its debt management framework, Tata Communications refinances its debt periodically, sometimes ahead of scheduled maturities, to align with its financial objectives. The proposal for NCD issuance will be reviewed by the Board of Directors at the upcoming meeting.

The company aims to manage balance sheet stability through a debt management framework that balances financing needs with long-term financial goals. This includes maintaining an even debt maturity schedule and using diverse debt instruments to access a wide pool of lenders across the geographies where the company and its subsidiaries operate.

The framework also focuses on minimizing risks associated with debt, such as interest rate risk, currency volatility, and liquidity risk, by creating natural hedges against business cash flows.