Tata Motors-owned Jaguar Land Rover (JLR) today said it will raise $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 $400 million Senior Notes due 2023," Jaguar Land Rover (JLR) said in a filing by Tata Motors on Bombay Stock Exchange.
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 pounds (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 $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.