The debenture issue is among the largest by an Indian company, Tata Motors said. The debenturesissued in four tranches with maturities ranging from 23 to 83 monthscarry a coupon of 2% and will be redeemed at varying premia on maturity. All the tranches are guaranteed by State Bank of India.
Tata Motors CFO C Ramakrishnan said, The issue was quite a success and well oversubscribed. The issue structure effectively met the companys requirement of tenors, cost and servicing.
The issue attracted interest from a wide base of institutional investors, comprising mutual funds, banks, insurance companies and financial institutions, a company release stated. A book-building process was followed for price discovery and the maturity yields were fixed at 6.75% pa for the 23-month tranche, 8.40% pa for the 47-month tranche, 8.45% pa for the 59-month tranche and 10% pa for the 83-month tranche. Citigroup and Tata Capital were lead arrangers for the issue and SBI Capital Markets was joint lead arranger.
While SBI issued the master guarantee of Rs 4,900 crore in favour of the debenture trustee, ten other Indian banks participated in the facility through counter guarantees provided to SBI. SBI Capital Markets was the lead arranger for the guarantee syndication and Citigroup along with Tata Capital were also joint lead arrangers.