A Tata group source said that the company is in the midst of arranging the funds and is looking at either a rollover of the bridge loan or replacing it with a new loan. Tata Motors UK, a wholly-owned subsidiary of Tata Motors, paid $3 billion, entirely through credit, around the middle of last year, for buying Ford’s Jaguar and Land Rover assets. A consortium of 10 foreign and Indian banks had underwritten the bridge loan.
Of the total consideration, the car maker has repaid $1 billion, which it had raised through rights issues and sale of part of its investment portfolio . For the balance amount, Tata Motors is in negotiations with its lenders. Citigroup is helping the company in negotiating the re-finance package.
Meanwhile, the source clarified that contrary to some media reports that it is looking for an aid from the UK government for re-financing the JLR deal, the discussions revolve around for the functioning of JLR, where the government should facilitate commercial borrowings at commercial terms for automakers to cope with recession, considering that JLR has a strong product development pipeline and a sound business model.
According to credit rating firm Crisil, the gearing level of Tata Motors is high primarily because of the borrowings to fund the JLR deal and ongoing capital expenditure.
Of the total consideration, the car maker has repaid $1 billion, which it had raised through rights issues and sale of part of its investment portfolio . For the balance amount, Tata Motors is in negotiations with its lenders. Citigroup is helping the company in negotiating the re-finance package.
Meanwhile, the source clarified that contrary to some media reports that it is looking for an aid from the UK government for re-financing the JLR deal, the discussions revolve around for the functioning of JLR, where the government should facilitate commercial borrowings at commercial terms for automakers to cope with recession, considering that JLR has a strong product development pipeline and a sound business model.
According to credit rating firm Crisil, the gearing level of Tata Motors is high primarily because of the borrowings to fund the JLR deal and ongoing capital expenditure.
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