Tata completes loan for Jaguar Land Rover

Tata Motors has received a £340m loan from the European Investment Bank (EIB) to finance the develop

According to Tata Motors, the facility is an eight year amortizing loan, which was granted under the European clean transport facility. The loan is structured with guarantee support from banks, with Credit Suisse working in lead with Jaguar Land Rover and Tata Motors in arranging the structure.

In addition, the State Bank of India provided a guarantee along with Bank of India and Bank of Baroda. Credit Suisse, Standard Chartered Bank, Deutsche Bank and JP Morgan are also providing additional guarantees to meet EIB credit requirements.

The company said that the EIB loan completes the funding plan for Jaguar Land Rover. In 2009, the company secured over £500m of funding for Jaguar Land Rover, including facilities from State Bank of India, Standard Chartered Bank, Bank of Baroda, ABC International bank, GE Capital, and Burdale Financial Limited, a subsidiary of the Bank of Ireland.

Ravi Kant, vice chairman of Tata Motors, said: "We are very happy with the support extended to us by the European Investment Bank, State Bank of India, Credit Suisse, and other banks.

"This will support the progress of turnaround in Jaguar Land Rover's business in challenging market conditions, alongside cost cutting measures, increase of volumes and the improved margins strategy currently being implemented by Jaguar Land Rover. We view Jaguar Land Rover as a key part of Tata Motors and we feel confident about its outlook for the future."