Tata Motors Passenger Vehicles Ltd.

Tata Motors’ arm Jaguar Land Rover (JLR) has raised 500 million pound through issue of bonds. The company has fixed the pricing of 500 million pound senior notes due 2020 at a coupon of 8.25% per annum.

The notes will be guaranteed by Jaguar Cars, Land Rover, Jaguar Land Rover North America, Land Rover Exports and Jaguar Cars Exports. The net proceeds from the issuance and sale of the notes will be used for general corporate purposes. The company, however, did not specify the areas where it intends to spend this fund.

Earlier, the company was expected to increase its planned 1.5 billion pound investment in the next fiscal on new products and ramping up capacities.

In April 2011, JLR announced to invest 1.5 billion pound every year for the next 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.