Ready with its pound sterling 1.5 billion investment plans, Tata Motors' subsidiary Jaguar Land Rover (JLR) today announced offer of bonds to raise 500 million pound from the global market.
"Jaguar Land Rover Plc, the parent company of Jaguar Cars Ltd and Land Rover, announces the offer of 500 million pound senior notes (private bonds) due 2020... The net proceeds from the issuance and sale of the notes will be used for general corporate purposes," the UK based company, which is known for its marque brands, said in a Tata Motors' filing to the Bombay Stock Exchange (BSE).
In an update for the Tata Motors' investors, JLR said on account of its increased sales and profits, there is a need to ramp up manufacturing capacity and tap the opportunities to develop new products to further drive growth.
"In fiscal 2012, we continue to expect capital spending will total about 1.5 billion pound [over Rs 12,000 crore]... Capital spending in fiscal 2013 is expected to be higher than in fiscal 2012," it said.
JLR which announced a manufacturing joint venture in China with Chery Automobile, said around 50% of its capital spending would be expected to be R&D costs and the rest on tangible fixed assets such as facilities, tools and equipment.
The bonds will be guaranteed by Jaguar Cars, Land Rover, Jaguar Land Rover North America, Land Exports and Jaguar Cars Exports, it added.
In April 2011, JLR had said it will invest 1.5 billion pound every year for the next five years, mainly on product development to emerge among the top premium brands in the world.
JLR is known worldwide for its Jaguar sedan and Land Rover SUV.