Tata Motors India’s Subsidiary Jaguar Land Rover is raising $500 million through overseas bond sale to reduce funding costs and meet its business expenditures.
High Yield Bond
The company is issuing high yield bond which will have about seven year maturity.
The initial yield guidance is expected to be around 6.75 percent.
Intermediaries
Citi, JP Morgan, Goldman Sachs, and ANZ are among the investment bankers that are engaged with the Company.
Company’s Financial
The company has a gross debt of 6.93 billion pounds at the end September 2020, out of which 63% of debt raised from the bonds and remaining from the bank facility and leases.
The gross debt grew 18.3% on year on year in the second quarter of FY21.
Jaguar Land Rover issued 1.6 billion pounds of new debt in the third quarter of FY20
Reserves
JLR has cash and cash equivalent of 3.59 billion pounds and an undrawn revolving credit facility of 1.93 billion pounds.
Earlier Funds Raising
JLR had raised 700 million pounds from bonds in the September quarter to increase liquidity.
And In the first quarter of FY21, 567 million pounds by a revolving facility in China.
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