By Aditi Shah
NEW DELHI (Reuters) - Indian automaker Tata Motors has raised $425 million through unsecured offshore bonds at a rate of 4.35% to refinance existing debt and meet expenses, according to a term sheet of the deal seen by Reuters.
Of the proceeds raised, Tata will use 225 million pounds ($318 million) to refinance existing loans and the rest to meet corporate expenses, according to the paper.
The bond, which has been issued for a period of two and a half years, was over-subscribed by about five times, according to a source with direct knowledge of the deal.
Tata Motors didn't immediately respond for a request for comment. The company owns British luxury brand Jaguar Land Rover
Tata Motors had net automotive debt of 409 billion rupees ($5.6 billion) at the end of last fiscal year through March 31. The company said in 2020 it plans to be net debt free at the end of three years.
Bank of America, BNP Paribas and ANZ were the lead managers on the deal, the term sheet showed.
($1 = 0.7067 pounds)
($1 = 73.1050 Indian rupees)
(Reporting by Aditi Shah; Editing by Shri Navaratnam)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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