Tata Motors jumpstarts Asia high-yield pipeline

The Indian automaker’s onshore listed company launches an inaugural $750m dual-tranche bond, making use of the country’s recent relaxation of withholding tax policy.

Tata Motors sold a $750 million dual-tranche offering on Thursday night, the first Indian entity to make use of the nation’s recent relaxation in withholding tax rules.

The Reg S-offering which can be broken down into a $500 million 5.5-year and $250 million 10-year tranche reopened the Asian dollar-denominated corporate high-yield bond market after recent bouts of market volatility, being the first issuance in nearly a month.

Tata Motors also ambitiously launched the Ba2BB rated deal, which was an inaugural offering from its onshore listed company, sans a global road show, but sources close to the deal said that investor familiarity towards the credit helped provide...

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