The auto major on Thursday announced that it has raised $425 million through unsecured offshore bonds at a rate of 4.35% to refinance existing debt and meet general corporate expenses.
TML Holdings, a wholly owned subsidiary of Tata Motors, successfully priced a $425 million 5NC 2.5 year Fixed Rate Senior Unsecured Notes due in 2026 at a coupon rate of 4.350%.The notes have received a rating of B from Standard & Poor's Rating Service, which is equated to S&P's rating on Tata Motor (rated 'B' with stable outlook). The Notes will be issued on 9 June 2021 with a maturity date of 9 June 2026.
The transaction has received significant interest from investors across Asia and Europe with the final order book in excess of $2.2 billion (representing an oversubscription of over 5.1x) from 138 accounts and 84% of the final allocation to high quality, blue-chip real money funds and asset managers.
TML Holdings is the holding company of JLR Automotive Plc, Tata Daewoo, Korea and few other international operations of Tata Motors. The proceeds from the Notes issuance will be used by TMLH for refinancing the outstanding syndicated loan facility of GBP 225 million, for meeting the issue expenses and for other general corporate purposes.
Shares of Tata Motors were up 0.87% at Rs 325.80 on BSE.
Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
On a consolidated basis, the auto major reported net loss of Rs 7,605.40 crore in Q4 FY21 lower than net loss of Rs 9,894.25 crore in Q4 FY20. Total revenue from operations during the quarter increased 41.8% year-on-year (YoY) to Rs 88,627.90 crore in Q4 FY21.
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