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Product cover image for Jaguar Land Rover plc: Bond Valuation (Spanish version)

Jaguar Land Rover plc: Bond Valuation (Spanish version)

S. Veena Iyer

Product #:W28507
Supplier:MDI/Ivey
Discipline:Finance
Setting:United Kingdom, 2015
Details:Case (PDF) • 7 pages • 2022-04-25

Subjects:

Finance and investing

Industries:

Fabrication and manufacturing

Geography:

EuropeUnited Kingdom
Your Price:$10.54

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Abstract: Jaguar Land Rover Automotive Plc, a wholly owned subsidiary of the Indian company Tata Motors Limited, announced bond issue worth US$500 million. The proceeds of this issue were to be used to refinance costlier outstanding bonds. The company was able to raise new debt at substantially lower interest rates than its outstanding debt as a result of its sustained good performance, which led to strong company fundamentals and improved credit ratings. Students will analyze the various motivations for such a financial strategy, whether it will lead to cost savings or cash flow savings and, if so, the extent of the savings.

Learning Objectives

Learning Objective: This case can be used in a Corporate Finance core course or in an elective course on Investment Management, Securities Analysis or Securities Valuation in graduate and executive management programs.
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Case Study: Jaguar Land Rover plc: Bond Valuation (Spanish version) | Ivey Publishing