Tatas bond risk hits record on Jaguar, Land Rover funding
The risk of Tata Motors Ltd defaulting on its bonds rose to a record on a proposal of India's biggest truckmaker to borrow $3 billion to fund a planned purchase of Ford Motor Co's Jaguar and Land Rover units.
By PTI |
HONG KONG: The risk of Tata Motors Ltd defaulting on its bonds rose to a record on a proposal of India's biggest truckmaker to borrow $3 billion to fund a planned purchase of Ford Motor Co's Jaguar and Land Rover units.
Credit-default swaps on the Mumbai-based company rose 10 basis points to a record 503 basis points at 3:48 p.m. in Hong Kong, according to ABN Amro Holding NV prices. That means it costs $503,000 annually to protect $10 million of Tata Motors' debt from default for five years.
Tata Motors plans to raise the 15-month loan from nine banks led by Citigroup Inc and JPMorgan Chase & Co, three people with direct knowledge of the deal said yesterday.
The company is also talking to Bank of Tokyo Mitsubishi UFJ Ltd, BNP Paribas SA, Calyon, ING Groep NV, Mizuho Financial Group Inc, Standard Chartered Plc and State Bank of India Ltd to arrange the loan, according to the people who declined to be identified because the information isn't public.
Credit-default swaps on the Mumbai-based company rose 10 basis points to a record 503 basis points at 3:48 p.m. in Hong Kong, according to ABN Amro Holding NV prices. That means it costs $503,000 annually to protect $10 million of Tata Motors' debt from default for five years.
Tata Motors plans to raise the 15-month loan from nine banks led by Citigroup Inc and JPMorgan Chase & Co, three people with direct knowledge of the deal said yesterday.
The company is also talking to Bank of Tokyo Mitsubishi UFJ Ltd, BNP Paribas SA, Calyon, ING Groep NV, Mizuho Financial Group Inc, Standard Chartered Plc and State Bank of India Ltd to arrange the loan, according to the people who declined to be identified because the information isn't public.
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