JLR seeks $1.3 bn amid Tata uncertainty

Mumbai: Jaguar Land Rover (JLR) is seeking approximately $1.3 billion in funding amid uncertainty surrounding the leadership of the Tata Group, according to sources. The automaker has begun discussions with global banks to raise the funds through a five-year term loan, but some lenders are hesitant to commit due to the leadership instability within the Tata Group.

JLR's chairman, N Chandrasekaran, also serves as chairman of Tata Sons, leading lenders to seek additional clarity on his continued tenure before agreeing to the financing. The proposed loan, likely with a fixed spread over the sterling overnight index average, is expected to be within 200 basis points. JLR remains confident that it will secure the necessary funds, stating that the Tata Group's leadership issues will not directly impact its operations.

The company has approached several banks, including HSBC, Citibank, MUFG, DBS, and BNP Paribas, for the fundraising discussions. However, the Tata Group and several lenders have declined to comment on the matter.