Banks’ consortium completes fund raising for Tata’s JLR buy

Banks’ consortium completes fund raising for Tata’s JLR buy
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First Published: Mon, Jun 02 2008. 06 06 PM IST
Updated: Mon, Jun 02 2008. 06 06 PM IST
By PTI
Mumbai: A consortium of banks completed the formalities on 2 June for raising the $3 billion (Rs12,709 crore) funds for Tata Motors to acquire British auto brands Jaguar and Land Rover.
“The process (of raising the amount) is over. Tata will borrow the money from us (the banks consortium) and might come with an official announcement in the next few days,” a source close to the development said.
Tatas had entered into a definitive agreement with Ford to buy Jaguar and Land Rover in March for $2.3 billion. The $3 billion fund raising included Tata Motor’s other committements as well.
As against the eight initial lead arrangers, the consortium has now expanded to 15 banks which include banking majors from Asia, UK and Singapore regions, the source said.
The eight mandated lead arrangers include State Bank of India, Citibank, JP Morgan, Standard Chartered, BNP Paribas, Tokyo Mitsubishi UFJ, Mizuho Financial Group and ING.
Even as the fund raising is complete,the syndication is likely to receive committments from some more banks in the coming few weeks which will expand the group of the banks who have funded the transaction, the source said.
The syndication had received commitments worth USD one billion from 6-7 banks earlier last month, comprising both domestic and foreign banks, according to sources.
Sources said a major portion of the funds would be mopped up from Asia and UK markets through bridge loans having a maturity of 12-15 months at an interest rate of about 1.10% above Libor.
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First Published: Mon, Jun 02 2008. 06 06 PM IST
More Topics: Tata | Banks | JLR | Ford | Jaguar |