Tata Motors today successfully concluded an agreement for amendment of its bridge finance loan, extending the final maturity of US$ 1 billion by 18 months up to 31st December 2010. This agreement, along with the earlier repayments and the Bond issue last week, completes the refinancing of the bridge finance of 12 months of US$ 3 billion raised in June 2008 for the acquisition of Jaguar Land Rover. 21 lenders, including two new banks, participated in this agreement, leading to an over subscription of 47% of the extended loan.
Of the US$ 3 billion bridge finance, the company repaid US$ 1.16 billion, including through Rights Issue and certain divestment proceeds last year. Further, US$ 840 million has been repaid through proceeds of the Non-convertible Rupee Debentures issued last week.
Mr. C. Ramakrishnan, Chief Financial Officer of Tata Motors, said ‘This transaction was concluded amidst challenging market conditions in the global credit markets and in the automotive sector. Tata Motors thanks the lending institutions for the trust reposed by them in the performance and outlook of the company.’