Tata Motors proposes to raise up to $500 million via ECB

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New Delhi | Published: June 7, 2018 10:15:44 PM

Tata Motors today said it plans to raise $250-500 million through overseas loans to refinance buy-back of bonds issued by the company in 2014.

tata motors, tata, industryTata Motors had issued senior notes worth 0 million on October 30, 2014 and due in 2020. (Reuters)

Tata Motors today said it plans to raise $250-500 million through overseas loans to refinance buy-back of bonds issued by the company in 2014.

Tata Motors had issued senior notes worth $500 million on October 30, 2014 and due in 2020.

Earlier this month, Tata Motors invited holders of the senior notes to sell their bonds to the company for cash consideration.

In a BSE filing, Tata Motors informed that the company plans to raise $250-500 million through external commercial borrowings (ECB) to refinance a part of the principal amount.

The company had said that the purchase price would be 102.5 per cent of the principal amount of the notes, being $1,025 for each $1,000 of notes. It will accept up to $250 million aggregate principal amount of notes.

“The company is undertaking the tender offer as part of its strategy to manage the maturity profile of its existing debt obligations. Notes purchased by the company pursuant to the tender offer will be cancelled by the company,” it had said.

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