Tata Motors brings yen-denominated CB with negative yield

Indian truck and bus maker raises $100 million in third offer since 2003.
February 16, 2006
Tata Motors became the second Indian issuer to sell yen-denominated convertible bonds this year when the manufacturer of cars, trucks and buses completed a Ñ11.76 billion about $100 million offer in the early hours of Thursday morning.

The Citigroup-led deal was also unusual in that it has a negative yield, a structure not seen in Asian markets for over a year. Tata Motors itself was the first ever Indian issuer to offer a negative yield on one of the two tranches of a US-dollar denominated CB sold in 2004.

The company has issued three CBs since 2003 with Citigroup being involved in all of them. This is the first time the bank has acted...
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