(Photo by FABRICE COFFRINI/AFP via Getty Images)

INDIAN auto major Tata Motors has raised $425 million (£301m) through unsecured offshore bonds at a rate of 4.35 per cent to refinance existing debt of its subsidiaries.

The company has raised the sum through its wholly-owned arm TML Holdings Pte Ltd (TMLH).

 

TMLH is the holding company of JLR Automotive Plc (JLR), Tata Daewoo, Korea and a few other international operations of Tata Motors.

 

Of the proceeds, Tata will use £225m to refinance existing loans and the rest to meet corporate expenses.

 

“The proceeds from the notes issuance will be used by TMLH for refinancing the outstanding syndicated loan facility of £ 225m, for meeting the issue expenses and for other general corporate purposes,” Tata Motors said in a regulatory filing Thursday (3).

 

The “transaction received significant interest from investors across Asia and Europe with the final order book in excess of $2.2 billion (£1.6bn) (representing an oversubscription of over 5.1 times),” the company said.

 

Earlier this year, Jaguar Land Rover announced a new global strategy, Reimagine, under which the company will reposition and redesign Jaguar as an all-electric luxury car brand by 2025.

 

As part of the strategy, Land Rover will also evolve as a manufacturer of luxury electric sports utility vehicles globally.