Tata Motors has been successful in securing a 175 million pound (600 crore) private sector loan for its ailing luxury brands Jaguar and Land Rover from Burdale Financial Ltd.
Burdale Financial Ltd, a member of the Bank of Ireland Group has confirmed that it will provide loans to Tata Motors that will include a three-year commitment to finance the parts and accessories' inventories and receivables of the Land Rover, which needs a huge amount of cash for it to work smoothly, in the United Kingdom and the United States.
"JLR is pleased to have concluded this facility which is an important element of our working capital financing arrangements," said Ken Gregor, CFO of the JLR.
"This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year. The government had offered bridging finance from the automotive assistance programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary," said Peter Mandelson, Business Secretary.
It can be recalled that Britain had pledged to guarantee up to 2.3 billion pounds of loans, including 1.3 billion pounds from the European Investment Bank in January, to help its ailing car industry cope with a slump in demand.