Tata Motors Raises $425 Million In Offshore Bonds To Refinance Debt

TML Holdings (TMLH), the fully owned subsidiary of home-grown automaker Tata Motors has announced raising $425 million (over Rs. 3,100 crore) through unsecured offshore bonds at a rate of 4.35 per cent. According to a regulatory filing posted by the company on the Bombay Stock Exchange (BSE), the proceeds from the bonds will be used by TMLH for refinancing the syndicated loan, for meeting expenses and other general corporate purposes. The company aims to pay off an outstanding debt of GBP 225 million, which is more than Rs. 2,325 crore.

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Tata Motors says that the bonds will be issued on 9th June, 2021 with a maturity date of 9th June, 2026.

The bonds have received a rating of 'B' from Standard & Poor's Rating Service (S&P) and they will be issued on June 9, 2021. The bonds will mature in June 2026. In its statement, the company has also said that the transaction received significant interest from investors across Asia and Europe with the final order book of over $2.2 billion (over Rs. 16,000 crore), which represents an over-subscription of more than five times of the bond issue. Bank of America, BNP Paribas and ANZ were the lead managers on the deal

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The company had net automotive debt of over Rs. 40,825 crore ($5.6 billion) at the end of the previous fiscal year that ended with March 31. In 2020 Tata Motors had said that it plans to be net debt-free in the next three years. And this could be a major step towards that goal. TMLH is the holding company of Jaguar Land Rover (JLR), Tata Daewoo, Korea and few other international operations of Tata Motors.