Tata Motors, has successfully concluded an agreement for amendment in the repayment of its bridge finance loan. The final maturity of the US$ 1 billion has been extended up to 31st December 2010.
According to a press release issued by Tata Motors, this agreement along with the earlier repayments and Bond issue last week, completes the refinancing of the bridge loan. Tata Motors had taken a bridge finance loan of US$ 3 billion to finance the acquisition of iconic British car brands Jaguar and Land Rover in June 2008. The Tata Motors lenders, 21 banks including two new banks, participated in this agreement, leading to an over subscription of 47 % of the extended loan.
The company had repaid US $1.16 billion including the rights issue and certain divestment proceeds, last year. Further, the company raised US$840 million through the proceeds of the non-convertible rupee debentures issued last week.
The Chief Financial Officer, Tata Motors Mr. C. Ramakrishnan said "This transaction was held amidst tough market conditions in the global credit markets and in the worldwide automotive sector."