just-auto.com

INDIA: Tata completes refinancing

By just-auto.com editorial team | 28 May 2009

Tata Motors has concluded an agreement for amendment of its bridge finance loan, extending the final maturity of US$1bn by 18 months to 31 December 2010.

"This agreement, along with the earlier repayments and the bond issue last week, completes the refinancing of the bridge finance of 12 months of $3bn raised in June 2008 for the acquisition of Jaguar Land Rover. 21 lenders, including two new banks, participated in this agreement, leading to an oversubscription of 47% of the extended loan," Tata said.

Of the $3bn, the company has repaid $1.16bn, including through rights issue and divestment proceeds last year. Another $840m was repaid through proceeds of the non-convertible rupee debentures issued last week.

 CFO C Ramakrishnan said: "This transaction was concluded amidst challenging market conditions in the global credit markets and in the automotive sector. Tata Motors thanks the lending institutions for the trust reposed by them in the performance and outlook of the company."