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

New Delhi: Tata Sons is seeking an offshore syndicated loan as it looks to pay down expensive debt at telecommunications units, according to people familiar with the matter. The holding company for the country’s biggest business group has mandated lenders for a $1.5-billion, six-year loan, the people familiar said this week.

Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices 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 Tata Teleservices Maharashtra debt is 11.3%, more than three percentage points higher than Tata Sons, according to data compiled by Bloomberg. The world’s secondbiggest 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 companies including Tata Teleservices Maharashtra.

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

Mozaffar EtezadiFar

Founder at Energykade
Mozaffar owns degrees in electrical engineering as BSc and power management as MSc. He has worked in fields of energy and e-commerce. He believes that energy and IT can help each other to save more energy and our planet. So here is energykade...
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