Fiat India Automobiles is about to finalise a loan of about loan of $ 510 million that about Rs 2,458 crore - for its capex and working capital programmes. The loans include a rupee term loan, an Export Credit Agency (ECA)-backed overseas loan, and a working capital loan.
The term loan of Rs 1,000 crore has a door-to-door maturity of six years while the ECA loan of euro 130 million (around Rs 900 crore) has a door-to-door maturity of eight years. The working capital loan of Rs 600 crore has tenure of one year.
Citi Group is the sole arranger for the loans. State Bank of India, Punjab National Bank, IDBI Bank and Union Bank of India was roped in for the rupee term loan and the working capital loan.
A Fiat India spokesperson said, "The company is discussing and finalising financing proposals with bankers to fund the company's originally planned operations. There is no change in production capacity." The original funding plan of 1:1 between rupee loan and ECA was subsequently revised to 2:1 on the back of rupee liquidity, said sources.