Tata Group generated around INR 40 billion from Singapore dollar-dominated bonds in 2013.
Tata Group is continuously contemplating on raising funds through Singapore citing the economic and institutional strength of the country. Tata Motors, Tata Communications and Tata Steel together have already raised an aggregate of around INR 40 billion from Singapore Dollar (SGD) dominated bonds.
According to sources, TML Holdings Pte, a Singapore-based subsidiary of Tata Motors, is in talks with banks to raise SGD 500 million through loans to meet its operational requirements. It is also heard that Tata Communications, a Mumbai-based subsidiary of Tata Group, is conducting road shows in Singapore to raise funds through bonds.
TML Holdings has raised around SGD 350 million, supported by Tata Motors, through the Singapore dollar dominated Regulation S bonds with 4.25% of annual coupon rate. The profits earned were used for some general corporate purposes and also for redeeming the preference shares issued to Tata Motors.
Singapore’s Finance Minister, Tharman Shanmugaratnam had said in his budget speech in Feb’13 that, “The qualifying debt securities (QDS) scheme would be extended by five years to December 31, 2018 in order to promote the local debt market. For debt securities issued during the period between January 1, 2014 and December 31, 2018, the requirement that the QDS can be substantially arranged in Singaporewill be rationalized to ease compliance for issuers.”
Tata Motors presently invests around INR 25-30 billion annually on the capital expenditure with its major share investments in developing a new product.
“As we are in the silent period in view of our imminent results announcement for Q2, we are not in a position to respond to these queries. Like any other large global company, Tata Motors considers various balance-sheet strengthening/restructuring initiatives from time to time, which will be announced at the appropriate time”, says a Tata Motors spokesperson.