Tata Motors Passenger Vehicles Ltd.

Tata Motors has raised $750 million from Asian and European investors by selling a dual tranche bond issue, which got an over subscription of six times at $4.5 billion. The issue proceeds will be used to refinance external commercial borrowings, capital expenditure and for general corporate purposes.

The company has priced the 5.5-year benchmark senior unsecured notes of $500 million at 4.625 per cent, while the coupon for the 10-year $250 million notes is fixed at 5.750 percent per annum. It had sold $300 million worth bonds in April at a coupon of 5.53 per cent for a five-year money, indicating better operating environment for the company.

Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.