Tata Motors, owner of Jaguar and Land Rover, said that it has raised $750 million by issuing global depositary receipts and convertible bonds to pay down debt. The debt was taken on for its acquisition of loss-making Jaguar and Land Rover, which it bought from FoMoCo last year.
Tata had a consolidated debt of around 240 billion rupees ($5.2 billion USD) at end-June. It purchased Jaguar and Land Rover for $2.5 billion.
“It’s a very positive development for the company. But it all depends on whether it would be entirely used to reduce the debt,” Standard & Poor’s analyst Suzanne Smith told Reuters.
Tata said that the $750 million will be used to repay the debt for the two British brands and will go towards capital expenditure, working capital and corporate purposes.
– By: Omar Rana