Tata Motors plans $2 bn bridge loan for JLR acquisition

In order to come over the JLR acquisitions, Tata Motors are now decisive to make a bridge loan of $2-billion. It is expected that the company might pay over interest rates of Libor (London Inter-Bank Offered Rate) to the limits of 400 basis points. All after this Tata Motors need to do is tie up with completion of fund work by the end of June so that transaction can be completed. Most of the bankers also believes that loan is needed to be given for nearly the whole year and further depending on the prices. The term period for the loan can be extended to over next 12 months also. Some company officials also believes that they are looking for new and better options for which the announcements are needed to heard at the right time. Moreover rumours are also coming regarding the launch of a rollover by the company from the present loan to a new or a replacement of the loan. According to the sources Tata Motors has paid over nearly $3 billion for the buying deal of Ford's Jaguar and the Land Rover, all through the credits which were available at the middle of the last year. An association of nearly 10 foreign and indian banks is working for the proper working of the bridge loan. Of the total considered loan, these car makers are repaying their $1 billion amount. This shown amount was actually produced through the workings on rights issue and sale of the parts from the investment portfolio. Company has worked with the sets of rights issue and part sales of the investments at present it is also working on the raising of $500-600 million all with the help of equity shares and works in the foreign market. Tata Motors are now working along the issue of foreign markets, depicting unfavourable market conditions and further checking the low interest of foreign investors. Moreover discussions are also going on regarding the reworking of Jaguar Land Rover all with the help of UK government, all these discussions work around the functioning of JLR. JLR also has strong functioning for the product development in business models.