Tata Motors may raise Rs 2,500 cr via NCDs in 2018-19

By: | Published: July 14, 2018 7:04 AM

Tata Motors is planning to raise a total of up to Rs 2,500 crore through non-convertible debentures (NCDs) in 2018-2019 on a private placement basis in one or more series, according to the annual report released by the company on Thursday.

Tata Motors, NCDs, Moody’s Investors Service, Jaguar Land Rover AutomotiveThe company will be raising the fund with an intention to finance the repayment of certain NCDs/term loans from banks, to fund part of the ongoing capital expenditure and for general corporate purposes. (Reuters)

Tata Motors is planning to raise a total of up to Rs 2,500 crore through non-convertible debentures (NCDs) in 2018-2019 on a private placement basis in one or more series, according to the annual report released by the company on Thursday. The company will be raising the fund with an intention to finance the repayment of certain NCDs/term loans from banks, to fund part of the ongoing capital expenditure and for general corporate purposes. Last year in August, the company had obtained members’ approval for borrowing up to Rs 3,000 crore by way of NCDs at its annual general meeting. However, it had borrowed only Rs1,500 crore by way of unsecured NCDs up to May 2018.

Meanwhile, Moody’s Investors Service on Thursday downgraded the company’s senior unsecured instrument ratings to Ba2 from Ba1.The rationale behind the company’s downgraded ratings is put to be Moody’s expectation of continued weakness in Tata Motors’ consolidated credit metrics over the next two years led by its wholly-owned subsidiary Jaguar Land Rover Automotive.

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