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Tata Motors said its wholly-owned subsidiary, TML Holdings Pte Ltd, has issued and allotted Singapore dollars 350 million of senior notes due 2018.
The notes carry an interest rate of 4.25 per cent. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes, the company said.
Senior notes refers to debt that takes priority over other unsecured or 'junior' debt owed by the issuer. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment.
The Australia and New Zealand Banking Group Ltd, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners.
In January, Jaguar Land Rover (JLR) Automotive plc, the parent company of the JLR group of companies and a subsidiary of Tata Motors, said it is raising capital for its expansion plans and announced $400 million senior notes due in 2023.
End-April, Tata Steel said Abja Investment Co Pte, a wholly-owned subsidiary of the company incorporated in Singapore, had priced an issue of Singapore dollar 300 million at 4.95 per cent senior unsecured notes due 2023. The notes are guaranteed by Tata Steel.
>amritanair.ghaswalla@thehindu.com
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