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India's Tata Motors raises 750 million dollars to repay Jaguar debt
Oct 9, 2009, 11:20 GMT
New Delhi - Indian auto major Tata Motors raised 750 million dollars by issuing global depository receipts (GDRs) and convertible bonds Friday to pay off debts incurred on acquiring the Jaguar and Land Rover brands, a company release said.
Tata Motors, which took over the loss-making brands from Ford Motor Company for 2.5 billion dollars in 2008, said it intended to use the net proceeds of the securities offering to repay outstanding debt of 700 million dollars.
Tata Motors initially aimed to raise 600 million dollars from the sale of the GDRs and bonds but raised the offering after meeting its target in less than an hour of opening, the release said.
Citigroup Global Markets, Credit Suisse and JP Morgan were joint bookrunners for the offering which would be listed on the Luxembourg Stock Exchange, the release said.
'This transaction is a reaffirmation of investor confidence in the automotive sector,' company vice chairman Ravi Kant said.
The offering would provide Tata Motors financial flexibility to pursue strategic goals, the release added.
Tata Motors shares were down by 6.66 per cent at 548.30 rupees in at the Bombay Stock Exchange on Friday.
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