Tata Perpetual Bond, a fixed income opportunity?

Economics 24 November 2020 3:45:PM


Investment Alert:

Opportunity to Invest in the Fixed Income Market 
Private Placement of Tata Motors Finance Ltd.

About the Issuer:

Tata Motors Finance Limited (TMFL) is the leading and most preferred financial institution engaged in financing the entire range of Tata Motors Commercial and Passenger vehicles. It is a non-deposit taking systemically important (ND-SI) NBFC. 
TMFL is one of the pioneers of vehicle financing established way back in 1957
The company has a strong footprint across India and operates through its own 260+ branch networks, in addition to Tata Motors dealers’ sales outlets

The company’s passenger vehicle business outperformed their expectations in the first half of fiscal 2021 with volumes increasing 10 percent year-on-year and business breaking even at the EBITDA level.

In this lower interest rate regime, there is a chance for an Investor to Invest in the Perpetual Bonds of the well-known entity Tata Motors Finance at a Yield of 9.75%

Issue Details: 

  • Issuer: Tata Motors Finance Ltd
  • Issue Size - 25cr + 75cr   
  • Coupon: 9.75%
  • Type: Unsecured, Listed, Rated, Redeemable, Subordinate Perpetual NCD
  • *Call Option: 10 years from the date of allotment
  • Ratings: *A by ICRA; Outlook Negative.
  • *Face Value: 10lacs
  • *Annual interest Payment
  • Inform latest by December 1st

Settlement Process:

First Settlement Date - December 4, 2020
Minimum Buying Rs.10 Lacs (1 Bond)
Settlement Amount - Clean Price + 1 Day Accrued Interest

If interested please contact us for Subscription at 022- 48934000 or drop us a mail at debt@geplcapital.com.

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