Mumbai: Tata Motors Ltd, which acquired British luxury car brands Jaguar and Land Rover from Ford Motor Co. in June 2008, on Thursday announced the completion of a £340 million (Rs2,414 crore at current rates) loan from the European Investment Bank (EIB) for the two brands. Ravi Kant, vice-chairman of Tata Motors, said the loan will support the progress of turnaround in Jaguar-Land Rover.
The debt facility is an eight-year amortizing loan to finance development and research that will contribute to lower emissions, the company said in a statement.
The loan is structured with guarantee support from banks, with Credit Suisse Group AG working with Jaguar-Land Rover while Tata Motors in arranging the structure. State Bank of India played a key role in the facility, providing a guarantee along with Bank of India and Bank of Baroda.
The company said the EIB loan completes the last major element of the funding plan for Jaguar-Land Rover.