Tata Motors' subsidiary Jaguar Land Rover (JLR) today said it has raised 500 million pound (over Rs 4,000 crore) through issue of bonds.
"We are pleased to have completed this transaction successfully which we believe demonstrates the market's confidence in our company and plans and is another significant milestone for JLR," Jaguar Land Rover Chief Financial Officer Kenneth Gregor said in a filing by Tata Motors to the Bombay Stock Exchange.
Last week, the company had announced to issue the senior notes worth 500 million pound.
The company said it has fixed "the pricing of 500 million pound senior notes due 2020 at a coupon of 8.25% per annum" but did not elaborate.
The notes will be guaranteed by Jaguar Cars, Land Rover, Jaguar Land Rover North America, Land Rover Exports and Jaguar Cars Exports.
"The net proceeds from the issuance and sale of the notes will be used for general corporate purposes," JLR said.
The company, however, did not specify the areas where it intends to spend this fund.
Commenting on the development, Tata Motors Chief Financial Officer C Ramakrishnan said: "This is a significant step in strengthening our balance sheet at the JLR and consolidated level, and we thank the investors for their support."
Earlier, the company had said in an investor update at Tata Motors website said that it is expected to increase its planned 1.5 billion pound investment in the next fiscal on new products and ramping up capacities.
In April 2011, JLR had said it would invest 1.5 billion pound every year for the next five years, mainly on product development as it looked to catch up with global luxury car makers and position itself as a top premium brand.
The British marque said it continues to invest in new products, technologies and capacity to meet customer demand in the premium automotive and SUV segments as well as to meet regulatory requirements.
Besides, JLR will invest 3.5 billion yuan (over Rs 2,800 crore) in its recently-announced joint venture with Chery Automobile in China to commence local assembly there.
The company is currently investing 355 million pound in an engine plant in the UK. It also planning to set up an engine manufacturing facility in India.
JLR had earlier announced to roll out 40 new products in the next 4-5 years.
