JLR secures $277.7 mn loan

JLR secures $277.7 mn loan

London: Loss-making car manufacturer Jaguar Land Rover (JLR) said on Wednesday it had secured a £175 million ($277.7 million) loan from the State Bank of India.

The company, which is owned by Tata Motors, said it had also recently agreed a new $90 million committed export financing facility with ABC International Bank.

Both are part of £500 million of new facilities the company has completed this year as part of a plan to enhance its funding.

“We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners in our business," Jaguar Land Rover chief financial officer Kenneth Gregor said in a statement.

In August Tata said JLR made a pretax loss of £62 million during the fiscal first quarter, and that the unit’s sales had fallen about 52% in the quarter from a year ago.

JLR announced last month it was planning to merge two of its three auto plants in England by 2014 as part of a business plan to tackle the impact of the economic downturn, which has seen car sales slump.