JLR to raise over Rs 2,100 cr via issue of bonds

Tags: bonds, JLR, Companies
Tata Motors-owned Jaguar Land Rover today said it will raise USD 400 million (over Rs 2,100 crore) through issue of bonds to support its operational costs and future growth plans.

"Jaguar Land Rover Automotive Plc, the parent company of the Jaguar Land Rover group of companies and a subsidiary of Tata Motors Ltd, announces the offer of USD 400 million Senior Notes due 2023," Jaguar Land Rover (JLR) said in a filing by Tata Motors on the BSE.

The notes will be guaranteed on a "senior unsecured basis" by Jaguar Land Rover, Land Rover, Jaguar Land Rover North America, Land Rover Exports and Jaguar Land Rover Exports, it added.

"The net proceeds from the issuance and sale of the Notes will be used for general corporate purposes, including to support Jaguar Land Rover's ongoing growth and capital spending plans," the company said.

The company, however, did not specify the areas where it intends to spend this fund.

In April 2011, JLR had said it will invest 1.5 billion pound every year for the following five years, mainly on product development as it looked to catch up with global luxury car makers and position itself as a top premium brand.

Last year, JLR had raised 500 million pound (over Rs 4,000 crore) through issue of bonds. In 2011, the UK-based auto maker had raised 1 billion Great Britain Pounds (over Rs 7,300 crore) to refinance its debt and other purposes.

In 2010, the company had raised 340 million Pounds loan from the European Investment Bank for research and development. In 2009 also, JLR secured over 500 million Pounds of funding, including facilities from SBI, StanChart, Bank of Baroda, GE Capital and Bank of Ireland.

JLR had earlier announced rolling out 40 new products in the next 4-5 years.

Tata Motors had acquired JLR from Ford for USD 2.3 billion in 2008.

The British marque had said it continues to invest in new products, technologies and capacity to meet customer demand in the premium automotive and SUV segments as well as to meet regulatory requirements.

EDITORIAL OF THE DAY

  • Protocols need to be quickly put in place for the success of Digital India

    The government has kicked off Digital India initiative in style. Companies too have queued up in large numbers with bagfuls of money.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Will Germany be able to deliver?

The BRICS aren’t the only countries whose stature has grown ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture