India’s largest truck and bus maker, Tata Motors Ltd, is in advanced negotiations with banks and financial institutions, including Life Insurance Corp. of India(LIC), to raise between Rs2,000 crore and Rs3,000 crore through nonconvertible debentures (NCDs), two persons familiar with the move said.
The money will be used to repay part of the $3 billion (Rs15,150 crore today) bridge loan the company took to buy Ford Motor Co.’s marquee brands Jaguar and Land Rover for $2.3 billion last January. About $2 billion of the loan amount is due by June. SBI Capital Markets Ltd, Citigroup Global Markets India Pvt. Ltd and Tata Capital Ltd, the Tata group’s non-banking financial company that also has an investment banking arm, will manage the fresh fund-raising programme, the two persons said. “The appointment of investment bankers will be finalized soon, in the next one week,” one of the two persons, a Tata group executive, said.
SBI Capital will play a “senior role” and lead-manage the issue, the other person, an investment banker advising Tata Motors on NCDs, said on Monday evening.
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