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Tata Sons, the holding company for Tata Group, has raised Rs 300 crore in 5-year and 10-year bonds at coupon rates of 8.6 per cent and 8.5 per cent, respectively. The company, which holds significant stakes in all group firms, earns primarily through dividends.
Tata Sons is also the primary investment vehicle for new ventures of the group. As it promotes the new airline Vistara and plans to launch a new e-commerce venture later this year, its requirement for funds has grown.
This is why the company is tapping Indian bond market more frequently. According to Bloomberg data, it raised Rs 3315 crore in 2014 through issuance of bonds, up from Rs 1,905 crore the previous year.
“We do not share information on such matters. Suffice it to say that, from time to time, Tata Sons raises funds as part of its on-going activities,” said a Tata Sons spokesperson.
The bonds issued today have got AAA rating from credit rating agencies Crisil and ICRA and ICICI Securities was the primary dealer for this.
