TNN
Mumbai, May 28: Tata Motors got a $1 billion loan to refinance debt used to buy Jaguar and Land Rover from Ford Motor Co, two people with knowledge of the matter said. Tata Motors agreed to pay interest of 5 percentage points more than the London interbank offered rate for the 18-month loan, said the people, who declined to be identified because the information isn't public. That's more than double the margin it was paying on a $3 billion bridge loan it used to buy the car makers last year.
The automaker has already repaid about $2 billion of the bridge loan. Tata sold Rs 4200 crore ($880 million) of bonds last week after raising cash from a share sale and offering term deposits to the public. Tata spokesman Debasis Ray declined to comment on the loan.