Mumbai: Tata Motors Ltd, India’s leading vehicles maker, has raised Rs4,200 crore ($884 million) through an issue of non-convertible rupee debentures, the company said.
The funds will be used to partly repay a $3 billion bridge loan Tata Motors had raised last year to acquire marquee brands Jaguar and Land Rover, the company said late on Wednesday.
It had already repaid $1.11 billion of the loan and the remainder is due for repayment on 2 June.
The debentures, issued in four tranches with maturities ranging from 23 to 83 months, carry a coupon rate of 2% and have been guaranteed by the State Bank of India, the company said.
The issue was book-built and the maturity yield for the 23-month tranche was fixed at 6.75%, for the 47-month tranche at 8.4%, for the 59-month tranche at 8.45% and 10% for the 83-month tranche.
State Bank had issued a master guarantee for Rs4,900 crore.
Citigroup and Tata Capital were the lead arrangers for the issue.