Tata Motors on Friday said its U.K.-based subsidiary Jaguar Land Rover had completed raising of 1 billion pound (over Rs.7,300 crore) to refinance its existing debt and other purposes.
“This is a major milestone in significantly strengthening the capital structure of Jaguar Land Rover and we are pleased with the outcome,” Tata Motors Chief Financial Officer C. Ramakrishnan said in a filing to the BSE.
Earlier this week, the company had announced its plans to raise the amount through the issue of sterling and U.S. dollar denominated senior notes, which were debt instruments that took priority over other unsecured or otherwise more ‘junior' debt owed by the issuer.
“Jaguar Land Rover, the parent company of Jaguar Cars and Land Rover, itself wholly-owned by Tata Motors, is pleased to announce the pricing of 1,000 million pound equivalent senior notes following a significant over-subscription by investors,” the company said.
JLR has issued 500 million pound worth senior notes due 2018, at an interest of 8.125 per cent annually. It has also issued two sets of $410 million senior notes each.
“The proceeds from the issuance and the sale of the notes will be used to refinance existing debt and for general corporate purposes,” the filing said.
The British firm's total debt as on December 31, 2010, stands at 2.65 billion pound (over Rs.19,300 crore), while parent Tata Motors' gross debt stood at about Rs.34,000 crore.
The move by JLR to raise funds comes after a month of announcing that it would invest around 7.5 billion pound (about Rs.54,000 crore) at least in the next five years.
