Business

Tata Motors to raise $500 million by issuing offshore bonds

ANI | November 14, 2019 11:11 AM
Tata Motors is a $45 billion global automobile manufacturing company

Mumbai (Maharashtra) [India], Nov 14 (ANI): Automobile manufacturer Tata Motors said on Thursday that its board of directors has approved the pricing and tenure of 500 million dollars (about Rs 3,572 crore) fundraise through bonds to be issued later this month.

Tranche one and two will be of Rs 200 crore each and mature on June 30, 2023 and September 29, 2023 while tranche three will be of Rs 100 crore and mature on June 28, 2024.

Tata Motors said Crisil has assigned double A-minus rating with negative outlook through a letter on October 23. Two days ago, global rating agency Moody's Investors Service allotted a Ba3 rating to the proposed senior unsecured notes with a negative outlook.

However, Moody's viewed Tata Motors preferential allotment of equity to its promoters as a credit positive as the vehicle manufacturer plans to apply the proceeds towards reducing its debt.

Last month, Tata Motors had said the parent group through Tata Sons will infuse 914 million dollars (about Rs 6,530 crore) equity into the company, of which 548 million dollars (about Rs 3,915 crore) will be paid immediately and the balance over a period of 18 months.

On the domestic front, however, Tata Motors continues to feel the heat due to economic slowdown, weak liquidity, low freight volumes and rural incomes.

Its passenger and commercial vehicle sales volumes have declined by 41 per cent and 30 per cent respectively in the first half of current financial year.

Tata Motors is the largest manufacturer of commercial and passenger vehicles in India. Its products include light, medium and heavy vehicles like trucks, pick-ups and buses, utility vehicles and passenger cars. (ANI)

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