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The fresh debt would be be raised through sale of non-convertible debentures in four tranches, credit rating agency Crisil has said, while assigning its top-grade credit rating for the debenture programme backed with a SBI guarantee.
The four trances of Rs 800 crore, Rs 350 crore, Rs 1,800 crore and Rs 1,250 crore will have tenors ranging from 23 to 83 months, with maturities ranging from March next year to March 2016, Crisil said in a statement.
"The guarantee amount is sufficient to meet the amounts due to investors including the interest, principal and redemption premium payable," it added.
Earlier, Standard and Poor's had said: "We continue to expect the company to be able to successfully complete its bridge facility refinance before the June 2, 2009, due date".
To acquire the UK-based Jaguar and Land Rover (JLR), Tata Motors had taken a bridge loan of USD three billion, of which it paid $1 billion through proceeds from a rights issue and disinvestments in October 2008 and another USD 126 million recently through a voluntary prepayment option.
For refinancing the remaining of the loan, the rating agency said, the company would raise funds through rupee bonds with maturities up to seven years and roll-over the balance amount with loans with maturities up to December 2010.
"The company (Tata Motors) said it is close to completion on both the plans," it added.
On future fund requirements of JLR, S&P had said, the company was in discussions with the UK government for providing guarantees to loans of 340 million pounds sanctioned by the European Investment Bank as well as additional loans from other commercial banks
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