The placement of Tata Motors Finance Solution Limited comes with a coupon of 9.23 (Annually) percent.
Here is an opportunity to invest in tata motor finance perpetual bonds. The placement of Tata Motors Finance Ltd (TMFL) comes with a coupon of 9.23 percent. An opportunity to invest in bonds of tata motors finance solution limited is up for a bid. Find out more in details about the instrument in the table below:
New Private Placement of Tata motors finance solution limited July 2022:-
Tata motors finance perpetual bonds July 2022:-
Issuer | Tata Motors Finance Solution Limited |
Issue Size | 25 Cr. Base issue+ 175 Cr. Green Shoe |
Coupon | 9.23%/Annually |
Issue Type | Unlisted, Unsecured, Perpetual bond. |
Call Option | After 10 Year from the date of allotment. |
Ratings | A Stable by CRISIL |
Face Value | 10,00,000 |
Interest Payment | Annual |
Step Up Coupon | 1% i.e. 100 Bps (If a call option is not exercised) |
Tentative allotment Date | 12th Jul 2022 |
First Value Date | 13th Jul 2022 |
Other:-
- Offering @PAR + ACCRUED INTEREST of 1 day
- Can be done in Multiple of 10 lacs.
Note: - Once blocked cannot be cancelled, Kindly give your firm bids As Early As Possible.
To invest or to know more, Feel free to get in touch with us at debt@geplcapital.com or you may also call us on 022-66182355.
About the Issuer of perpetual bonds:
About Tata Motors Group:-
- Tata Motors Finance Limited (TMFL) and Tata Motors Finance Solutions Limited (TMFSL) are Non-Banking Financial Companies (NBFCs) with each of them being a subsidiary of TMF Holdings Limited (TMFHL).
- The TMF Holdings Limited is a core investment company (CIC) held 100% by Tata Motors Ltd ( TML ) which is a leading global automobile manufacturer with a portfolio that covers a wide range of cars, sports vehicles, buses, trucks, and defense vehicles.
- As per the business arrangement, the new vehicle financing business of TMFHL is undertaken by TMFL, while the dealer/vendor financing business and used vehicle refinance/repurchase is undertaken by TMFSL.
- Tata Motors Finance Solutions Ltd (TMFSL) (Formerly Rajasthan Leasing Private Limited) is a fully owned subsidiary of Tata Motors Finance Holdings Ltd (TMFHL).
- Since January 2015, with it's Headquarters in Thane, TMFSL focuses on Tata Motors’ ‘Used Vehicles’ financing business. The company concentrates on growing the market of Used Tata Motors Vehicles through Quick and easy financing for Used Tata Vehicles. It also supports Tata Motors’ ecosystem comprising of Dealers & Vendors by extending corporate loans to them.
- TMFSL aims to transform the unorganized used business into an organized model wherein customers find TMFSL to be a reliable and trustworthy enabling partner for buying and selling used commercial vehicles.
- To achieve this, TMFSL through it's well-trained team positioned all across the country assures delivery of innovative financial solutions in an agile manner in a fair & transparent way to it's customers.
- Tata Motors Finance Solutions Limited (TMFSL) derives significant support from it's ultimate parentage in the form of Tata Motors Limited (TML, rated [ICRA]AA-(Stable)/[ICRA]A1+). TMFSL is a wholly-owned subsidiary of TMF Holding Limited (TMFHL, rated at [ICRA]AA-(Stable)/ [ICRA]A1+) which, in turn, is wholly owned by TML.
- Used Vehicles Finance Business: The company enjoys strong linkages with TML Group and it's large dealer network, becoming the preferred financier for refurbished vehicles ‘Tata Assure’ (for passenger vehicles) and ‘Tata OK’ (for commercial vehicles).
- TMFSL supports Tata Motors’ ecosystem of Dealers & Vendors by extending Corporate loans, channel funding, and Dealer financing solutions.
Take a look at the previous offerings of Tata perpetual bonds:
- Perpetual bonds do not have a specified date of maturity. The issuers can buy back the bonds after a certain period, and it is generally five years or 10 years. Like other bonds, these bonds are also listed on the stock exchanges and provide exit opportunities to the Investors. Nowadays, Perpetual Bonds are making some noise in the market for all the right reasons.
- Investors are now pulling out there investments made in bank fixed deposits (FDs) and putting them into perpetual bonds. Also, the rate cuts made by the Reserve Bank of India (RBI) since 2019 and aggravating COVID-19 impact has made FDs loose there shine.
- Tata Motors Finance Limited has issued Six tranches since Sept 2020 starting with a coupon of 10.25% to 9.75 twice, 9.60 & 9.55 twice in Jan & March 2021, and currently up for a deal at a rate of 9.10%. In all the tranches the issuer has raised the amount successfully one because of the Brand Name and the second the terms of the issue.
- The issuer also promises to pay additional 100 bps to the base coupon if the call date is not exercised means the coupon will be revised to 10.20% from 9.20% at the end of the 10 years from the allotment date.
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