Jaguar Land Rover launches $1.6 bln bond issue

Luxury carmaker Jaguar Land Rover has launched a £1.0 billion ($1.6 billion) bond sale, the company's Indian parent Tata Motors said, as part of a drive to refinance debt and develop its operations. A successful sale would highlight the profit-making firm's ability to raise debt without relying on the support of Tata Motors, India's leading vehicle maker. The money is earmarked for refinancing existing debt as well as for "general corporate purposes," Jaguar Land Rover said in the statement on Monday. Tata Motors bought Jaguar and Land Rover from US Ford Motor Co in 2008 for $2.3 billion a purchase that coincided with the global financial crisis that hit sales of the luxury cars. The Indian company took a $3 billion loan to finance the purchase. Jaguar Land Rover swung back to profit last year following a deep sales downturn during the financial slump. An investor roadshow will be held in Europe and the United States ahead of the planned three-part bond issue. The three tranches will include a sterling bond and a dollar bond issue, both with a seven-year maturity. The final tranche will be a 10-year dollar-denominated bond. Last week Jaguar Land Rover said it was looking for a partner in the fast-growing Chinese car market. It plans to invest five billion pounds ($8 billion) in developing new high-performance vehicles over the next five years.