 "Jaguar Land Rover to raise $500mn via bonds")
Luxury auto brands Jaguar Land Rover Automotive is expected to follow parent Tata Motors in fund raising when it comes out with a bond sale in the coming days.
The two UK-based brands will issue senior notes of $500 million (about Rs 3,000 crore) to investors to fund ongoing growth and capital spending plans.
Tata Motors last week announced the successful raising of $750 million (Rs 4,600 crore) through the issuance of senior unsecured notes, for which it received orders of $4.5 billion. The dual-tranche issue was opened and closed in a single day.
"Jaguar Land Rover Automotive plc, the parent company of the Jaguar Land Rover group of companies and a subsidiary of Tata Motors, has announced the offer of $500 million Senior Notes due 2019. The net proceeds from the issuance and sale of the Notes will be used for general corporate purposes", a statement from Jaguar Land Rover said.
This is the second time this calendar year that the two brands have hit the market to raise funds. The last time Jaguar Land Rover raised funds in this way was in January 2014, when ?400 million notes, due 2022, were issued. In addition, in December 2013, $700 million notes due 2018 were transacted.
Jaguar Land Rover, announced a hike in capital expenditure plan this year to Pound 3.5-3.7 billion from around Pound 2.75 billion last year. This includes funding for the new China and Brazil plants, new power trains and technologies to meet regulatory requirements, capacity expansion at existing UK facilities and also meeting new product development expenses.