Tata Steel approves exchange offer for securities

MUMBAI, Nov 12 (Reuters) - India's Tata Steel (TISC.BO) has approved a new convertible bonds offer in exchange for an existing $875 million securities to reduce costs and ease repayment obligations, the company said on Thursday.

The world's eighth-largest steel maker said the new foreign currency convertible bonds will have an yield-to-maturity of 4.5 percent and will mature in November 2014, compared with the convertible alternative reference securities of 5.15 percent due 2012.

The new bonds are convertible into shares at 605.53 rupees each, which is 15 percent above the closing price on Wednesday, at a fixed exchange rate of 46.36 rupees to the U.S. dollar, the company said.

Standard Chartered Bank (STAN.L), ABN AMRO Bank and Citigroup (C.N) are the deal managers to the offering. (Reporting by Ami Shah; Editing by Ranjit Gangadharan)