In one among the largest debenture issues by an Indian corporate, Tata motors raised Rs.4200 Crore ($840 million) through an issuance of Secured Non-convertible Rupee Debentures.
With the tranches Guaranteed by State Bank of India, the debenture issue had four tranches with maturities from 23 to 83 months. On maturity, these debentures with a coupon rate of 2 percent will be redeemed at varying premium.
The issue is aimed at funding repayment of $3 billion bridge facility availed for acquiring Land Rover and Jaguar. The Chief Financial Officer of Tata Motors, Mr. C. Ramakrishnan said that the issue was oversubscribed and was a good success.
Mutual funds, Banks and Financial institutions were among the institutional investors who chose to invest in this debenture issue by Tata Motors. The pricing was done through book building process. The maturity yields for the issue will be 6.75% , 8.4% , 8.45% and 10 % for trenches with durations of 23, 47, 59 and 83 months respectively.
The lead arrangers of the issue were Citi group and Tata capital.