Jaguar Land Rover is seeking about $1 billion through a five-year term loan from a group of global banks, The Economic Times reported Monday, citing people familiar with the matter.
The automaker has reportedly approached eight or nine lenders, including HSBC, Citibank, MUFG, DBS and BNP Paribas. The proposed loan is expected to carry a fixed spread over the sterling overnight index average, or SONIA, of less than 200 basis points.
The lenders are seeking clarity on Tata Group Chairman N. Chandrasekaran's continued leadership before committing to the financing, the report noted. Lenders are also assessing Tata Group's support for Jaguar Land Rover amid uncertainty over the tenure of Chandrasekaran, who also chairs Jaguar Land Rover.
Jaguar Land Rover is reportedly confident that it will raise the funds. Executives close to the matter said the leadership uncertainty has not affected the talks, according to the report.
Jaguar Land Rover did not immediately respond to' request for comment.
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