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JLR plans to raise funds
11 May 2011: Tata Motors’ UK based subsidiary Jaguar Land Rover (JLR) will raise 1 billion pound (approx Rs 7,300 crore) to refinance existing debt and other purposes.
The net proceeds from the issuance and the sale of the notes will be used to refinance existing debt and for general corporate purposes. While JLR's total debt couldn't be ascertained, parent Tata Motors' gross debt stood at about Rs 34,000 crore as on 31 December 2010.
The move by JLR to raise funds comes after a month of announcing that it will invest around 7.5 billion pounds (approx Rs 54,000 crore) at least in the next five years, mainly on product development to catch up with global luxury car makers and position itself as a top premium brand.
In 2010, JLR 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.
Source: Business standard