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Tata Motors' Singapore-based subsidiary TML Holdings has raised $300 million (Rs 1,800 crore) through a debt securities issue, the company said today.
TML Holdings which owns shares in Tata companies such as Jaguar Land Rover, Daewoo among other international companies of Tata Motors has issued and allotted in principal amount of 5.75% senior fixed rate notes due 2021.
"The net proceeds from the notes will be used to repurchase certain equity shares issued to Tata Motors and for general corporate purposes", the company stated.
Australia and New Zealand Banking Group, Bank of America Merill Lynch, Citigroup and HSBC have acted as joint lead managers and joint bookrunners.
Vijay Somaiya, head of treasury and investor relations, Tata Motors said, "The response from investors for the issue was overwhelming with the orders aggregating over $2 billion".
Last year the company which owns premium brands Jaguar Land Rover (JLR) raised Rs 1,545 crore through issuance of Singapore Dollar bonds. JLR also raised $500 million (Rs 2,750 crore) through senior debt in January last year.
Tata Motors had indicated that capital expenditure at JLR was being raised to GBP 3.5-3.7 billion this financial year, substantially higher than last year where it spend GBP 2.75 billion.
The company clarified that intends to continue its investment plans in new product development, new power trains and technologies to meet regulatory requirements, capacity expansion at existing UK facilities and setting up of new plants in China and Brazil.
