MUMBAI - TATA Motors Ltd , India's leading vehicles maker, has raised 42 billion rupees (S$1.29 billion) through an issue of non-convertible rupee debentures, the company said.

The funds will be used to partly repay a US$3 billion (S$4.37 billion) bridge loan Tata Motors had raised last year to acquire marquee brands Jaguar and Land Rover, the company said late on Wednesday.

It had already repaid US$1.11 billion of the loan and the remainder is due for repayment on June 2.

The debentures, issued in four tranches with maturities ranging from 23 to 83 months, carry a coupon rate of 2 per cent and have been guaranteed by the State Bank of India , the company said.

The issue was book-built and the maturity yield for the 23-month tranche was fixed at 6.75 per cent, for the 47-month tranche at 8.4 per cent, for the 59-month tranche at 8.45 per cent and 10 per cent for the 83-month tranche.

State Bank had issued a master guarantee for 49 billion rupees.

Citigroup and Tata Capital were the lead arrangers for the issue.