Tata Motors has raised $840 million in debentures that will now be used to replay the Jaguar Land Rover deal. The company had been struggling to meet the repayment of the three billion dollar bridge loan that it took last year to buy these prestigious brands. "The funds raised will be used for part repayment of the three-billion-dollar bridge facility taken for acquiring Jaguar Land Rover," Tata Motors said in the statement late Wednesday.
Tata Motors had raised a debenture issue which was quite successful and well subscribed. The company had already paid$1.11 billion out of the total debt and the balance remains to be paid by next month. ''The issue structure effectively met the company's requirement of tenors, cost and servicing,'' said Tata Motors’ Chief Financial Officer, C Ramakrishnan.
Tata Motors is in talks with bankers to raise the remaining Rs. 4700 crore in order to repay the remaining loan. The company had earlier managed to raise Rs. 25 billion earlier this month with its fully paid advance bookings from more than 203,000 customers in India for its latest model Nano. Tata Nano has been acclaimed as the world’s cheapest car.