Tata Motors Cuts Debt Costs With First Offshore Loan in 2 Years
- Indian company is marketing 640 million-pound facility
- Pound loans from Indian borrowers far fewer than dollar loans
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India’s Tata Motors Ltd., owner of luxury car brand Jaguar Land Rover, is raising funds from the international syndicated loan markets after a gap of almost two years in a bid to lock in one of the lowest borrowing costs for a non-investment grade borrower.
Tata Motors is marketing a 640 million-pound facility at 104 basis points more than the London interbank offered rate for a tranche due in July 2022 and 145 over Libor for obligations maturing July 2023, according to people familiar with the matter. Group company Tata Chemicals Ltd., rated Ba1 by Moody’s Investors Service and BB+ by Fitch Ratings Ltd., similar to Tata Motors, raised 140 million pounds in 2016 at a margin of 199 basis points more than Libor.