After its $300 million worth bond sales
in April, Tata Motors has raised another $750 million from Asian and European
investors by selling a dual tranche bond issue which got an over subscription
of six times at $4.5 billion.
The company has priced the 5.5-year
benchmark senior unsecured notes of $500 million at 4.625 per cent, while the
coupon for the 10-year $250 million notes is fixed at 5.750 per cent per annum.
The proceeds from the recent issue will
be used to refinance external commercial borrowings, capital expenditure and
for general corporate purposes, the company said in a statement.
Global rating agency Standard & Poor
has assigned BB long-term issue rating to the issue while highlighting Tata Motors'
increased dependence on Jaguar Land Rover (JLR) while rival Moody's has
assigned Ba2 to the notes with a stable outlook.
Moody's also based the ratings to the continuing good show by its British arm JLR which has contributed over 90 per cent of group operating profit in FY14. "The phenomenal success of JLR continues to buy time for Tata Motors' weak domestic operations to turn around, and these are now showing some improvement."
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