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Tata Sons plans first overseas loan in more than a decade to pay debts

The holding company for India's biggest business group has mandated lenders for a $1.5 billion six-year loan, said sources

Anurag Joshi | Bloomberg 

Tata Group

Ltd is seeking an offshore syndicated loan, as it seeks to pay down expensive debt at telecommunications units, according to people familiar with the matter.

The holding company for India’s biggest business group has mandated lenders for a $1.5 billion six-year loan, the people familiar said this week. plans to use the proceeds to repay debt of units and Maharashtra, according to a separate person familiar with the matter, who asked not to be identified as the person isn’t authorised to speak.

The weighted average fixed coupon on Maharashtra debt is 11.3 percent, more than three percentage points higher that Tata Sons, according to data compiled by Bloomberg. The world’s second-biggest mobile-phone market is undergoing a shakeout as carriers compete for customers with some of the lowest tariffs on the planet, resulting in losses at including Maharashtra.

The loan is set to be the first offshore syndicated facility taken out by since 2007, according to data compiled by Bloomberg. Group company Ltd has also hired banks for a separate $1.9 billion loan, as it refocuses on the Indian market and engages in a major refinancing.

First Published: Fri, March 09 2018. 23:49 IST
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