Tata Power Co is set to raise Rs 20 billion through a bond issue likely to be launched on Thursday, marking its first such fundraising exercise in more than two years, according to media reports citing sources.

The proceeds will be used to refinance existing borrowings, invest in renewable energy projects and meet general corporate requirements, people familiar with the matter said.

The three-year bond, due on December 19, 2028, is expected to be priced at around 7.05 per cent, while the five-year bond, maturing on December 19, 2030, is likely to carry a coupon of about 7.25 per cent. Institutional investors, including mutual funds, insurance companies and banks, are expected to participate in the issue.

In a separate development, Tata Chemicals Ltd has raised Rs 15 billion through the private placement of non-convertible debentures.

The company allotted 150,000 listed, unsecured, rated, redeemable, taxable and non-cumulative debentures, each with a face value of Rs 100,000. The debentures carry a fixed coupon of 7.06 per cent and have a tenure of two years and 364 days.

Tata Chemicals said the debentures were issued to identified investors using multiple yield allotment methods, with the issuance approved by its internal board committee. The NCDs will be listed on the debt segment of the National Stock Exchange of India.