(ET)
Tata Sons is planning to tap the foreign loan market to raise $2 billion, its largest such borrowing till date, as group companies including Tata Steel and Tata Motors are expected to need liquidity support from the conglomerate’s holding company.
Senior Tata leaders are currently engaged with bankers and other financial institutions for price discovery ahead of the scheduled fund-raise, multiple officials aware of the situation said.The plan is to build a book at 120 basis points above Libor and the facility is expected to be for five years.
In early 2018, Tata Sons raised $750 million through a special Reserve Bank of India dispensation to repay lenders of Tata Teleservices. But following the changes in guidelines earlier this year, which allowed NBFCs to tap the foreign loan market, Tata Sons, registered as a core investment company with the RBI, is once again keen to avail this option.
