TATA raises Rs 4200 crore via NCD release

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TATA raises Rs 4200 crore via NCD release
Mumbai: TATA Motors has raised 4200 crore through the release of non convertible debentures (NCD), which will be used for paying the $ 3 billion bridge loan taken for acquiring the Jaguar Land Rover( JLR) last year. Earlier TATA had paid 1.11 billion for the acquisition. The lead arrangers of the deal were Citigroup and TATA Capital, with SBI Capital being the joint lead arranger. The master guarantee of Rs 4, 900 crore was issued by SBI, in four tranches with maturities ranging from 23-83 months. Ten other Indian banks participated in the facility through counter guarantees provided to SBI. The debentures issued are carrying an interest rate of 2 percent, which will be redeemed at different premia on maturity. The maturity yield was fixed at 6.75 percent per annum for the 23 month' tranche of 800 crore, 8.40 percent per annum for the 47 month tranche of 350 crore, 8.45 percent per annum for the 59 month tranche of 1850 crore and 10 percent per annum for the 89 month tranche of 1200 crore. The interest will be paid quarterly while the principal will be paid as bullet payment. "The issue structure effectively met the company's requirement in terms of tenors, cost and servicing," said Tata Motors CFO C Ramakrishnan. The major investors in the debentures released were the institutional investors incorporating mutual funds, banks, insurance companies and financial institutions. The company is believed to have secured Rs 1,250 crore of the Rs 4,200-crore through LIC.