Mumbai, April 23: Tata Motors, India’s largest automobile maker, is talking to banks for raising $300 million (Rs 1,800 crore) through dollar-denominated bonds, the second such issuance by the city-based company this year. Sources said the issuance would be carried out in two-three weeks. TML Holdings PTE, Tata Motors’ Singapore arm, will conduct the issue. Tata Motors has appointed ANZ, Bank of America Merrill Lynch, Citigroup and HSBC as arrangers for the issue, according to news agency Bloomberg.
A Tata Motors spokesperson said, “No comment on market speculation.” Last month, the company had reportedly planned to raise Rs 300 crore through a bond sale at 10 per cent. Last year, it had raised Rs 1,545 crore through an issuance of Singapore dollar-denominated bonds. In January 2013, Jaguar-Land Rover, a subsidiary, had raised $500 million (Rs 2,750 crore) in senior debt. Tata Motors had indicated this financial year, JLR’s capital expenditure was being raised to £3.5-3.7 billion, substantially higher than £2.75 billion in the past financial year.
The company clarified that intends to continue its investment plans in new product development, new power trains and technologies to meet regulatory requirements, capacity expansion at existing UK facilities and setting up of new plants in China and Brazil.
Source: Business Standard