Tech Mahindra raises $55 mln via comm paper

MUMBAI, INDIA: Software services group Tech Mahindra, which is waiting for regulatory approval to buy Satyam Computer Services, has raised 2.75 billion rupees ($55 million) via short-term debt, two sources said.

The one-year commercial paper carries a coupon rate of 8.50 percent, the sources told Reuters.

Tech Mahindra has also raised 6 billion rupees ($120 million) this week through the sale of bonds.

Kotak Mahindra Bank was sole arranger to the issues.

Tech Mahindra will pay $351 million for a 31 percent preferential allotment of new shares in Satyam and will make an open offer for a further 20 percent of the fraud-hit company at a cost of up to around $225 million.