Tata to borrow $3 billion for Jaguar/LR purchase

Jag/LR

Tata will be taking a one-year bridge loan from Citigroup & JPMorgan to fund the purchase of Jaguar & Land Rover from Ford. The three-billion dollars will also help finance the costs associated with launching the Nano, soon to be the most affordable car in the world.

The purchase of Jaguar & Land Rover may yield some unappealing side effects though.Β Standard & Poor may downgrade Tata from its current BB+ rating due to the increased debt.

The loan agreement is still in the early stages, but the sale of Jaguar & Land Rover should be complete by month’s end.

Source: Automotive NewsΒ (Subscribtion Required)

Chris Chin

Chris Chin is the Editor-In-Chief of egmCarTech and is a regular contributor to Automobile Magazine.

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