Tata Motors Ltd will raise $300 million through unsecured offshore debt financing, the company said in a filing to the stock exchanges late Wednesday.

The bonds will bear a coupon rate of 5.875% and will mature in 2025, the company said.

Earlier on Tuesday, global rating agency Moody’s Investors Service allotted a Ba3 rating to the proposed senior unsecured notes to be issued by Tata Motors, with a negative outlook.

Last month, the automaker had said the parent group through Tata Sons will infuse $914 million ( ₹6,500 crore) equity into the company, of which $548 million will be paid immediately, and the balance over a period of 18 months.

Moody's views Tata Motors preferential allotment of equity to its promoters as a credit positive as the vehicle manufacturer plans to apply the proceeds towards reducing its debt.

"The equity injection also reflects Tata Sons' continued support, and will somewhat reduce the pressure on TML's balance sheet stemming from the weak operating performance of its India business, even as JLR delivers some improvement," the agency said in a press statement.

Moody's also noted the cost savings at Jaguar Land Rover (JLR) through Project Charge, a cost-saving programme, that has already achieved a saving of GBP2.2 billion out of a targeted GBP2.5 billion. In addition, Moody’s said, JLR has also achieved GBP1.5 billion of its GBP1.7 billion target on capital expenditure and working capital improvements as of September 2019.

Looking ahead, Moody's expects JLR's adjusted debt/EBITDA to improve to 6.0x over the next 12 months from 10.6x in March 2019.

On the domestic front, however, Tata Motors continues to feel the heat on the back of economic slowdown, weak liquidity, low freight volumes and rural incomes.

Tata Motors’ passenger vehicles and commercial vehicles sales volumes have declined 41% and 30% in H1 FY20 respectively.