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On 15 October 2009, the Luxembourg Stock Exchange admitted to trading a convertible bond issue and an issue of Global Depositary Shares (GDSs) from Tata Motors, India’s largest automobile maker, for a total amount issued of USD 750 million.
Both issues were admitted to the Euro MTF market of the Luxembourg Stock Exchange.
The bond issue (ISIN: XS0457793510) raised USD 375 and was in the form of foreign currency convertible notes comprising 3,750 notes with a 4% coupon and a maturity in 2014. The GDS issue (ISIN: US8765686014) was made up of 29,904,306 shares and raised USD 375 million. The main part of the proceeds raised from both issues will be used to repay debt in relation to the company’s acquisition of Jaguar Land Rover (JLR). The remaining part of the proceeds may also be used for other purposes such as capital expenditure, working capital and other general corporate purposes.
This dual admission of a GDS and bond issue demonstrates of the expertise and experience of the Luxembourg Stock Exchange in the listing of all types of securities. It is Europe’s leading exchange for listing international bonds, as well as an important exchange for depositary receipts, with 227 quotation lines from companies in 18 countries around the world.
The majority of the depositary receipts listed are from Indian companies, with 140 quotation lines from 132 companies.
GDSs and the related GDRs (Global Depositary Receipts) are instruments that represent shares in underlying issuing companies and are particularly useful for companies in emerging markets by enabling them to have access to foreign capital markets. For investors, mainly institutional, such instruments are often the simplest means to invest in a specific share without buying them at local level.
The Luxembourg Stock Exchange was the first European exchange to list a GDR and has experience in depositary receipts and depositary shares going back to the 1960’s. It continues to remain very active in this field.
