Tata Motors has raised $425 million via unsecured offshore bonds
Tata Motors has raised $425 million via unsecured offshore bonds at a fee of 4.35 per cent to refinance present debt and meet bills, in keeping with a time period sheet of the deal seen by Reuters.
In an announcement to the inventory alternate, the corporate confirmed the fund elevating and mentioned it is going to use 225 million kilos ($318 million) of the proceeds to refinance present loans and the remaining to fulfill company bills.
The bonds have a maturity date of June 2026, it mentioned.
Tata Motors, which owns British luxurious model Jaguar Land Rover, mentioned it acquired “significant interest from investors across Asia and Europe” with the bond concern over-subscribed by over 5 instances.
The bond concern has a ‘B’ ranking from Standard & Poor’s Ratings Service.
In India, a AAA rated state-run agency would wish to pay round 5.9% for elevating 5 yr funds on the present ranges, making offshore fund elevating engaging regardless of the foreign money conversion prices. Offshore gross sales additionally allow bond issuers to lift bigger sums and diversify their debt-investor base.
About two dozen Indian corporations collectively raised $14.01 billion overseas in 2020, down from $26.5 billion the earlier yr, in keeping with information from Dealogic, a worldwide analytics agency.
Tata Motors had internet automotive debt of Rs 409 billion ($5.6 billion) on the finish of final fiscal yr via March 31. The firm mentioned in 2020 it plans to be internet debt free on the finish of three years.
Bank of America, BNP Paribas and ANZ had been the lead managers on the deal, the time period sheet confirmed.
