Tata plans to raise 1 bn pound to keep JLR afloat: Report

posted under by NSmurthy
London: Indian conglomerate Tata group-owned Jaguar Land Rover (JLR) is planning to raise up to 1 billion pound by September to keep the cash-starved company afloat without the British government's help, media report said.

According to a daily newspaper, "Tata is trying to raise up to 1 billion pound by September to keep Jaguar Land Rover afloat without government help." As per the report the Tatas have mandated financial adviser Citigroup to find banks with solid credit ratingprepared to underwrite some of the 340 million pound loan pledged by the European Investment Bank (EIB).
The Tatas are also seeking to tap the debtmarkets to help secure the 500 million pound to 1 billion pound short-term financing package needed, the newspaper added.
"Even if Tata can raise more debt and find banks willing to underwrite part of the EIB loans, the cost of the financing will be very high," the news daily said.
The report further said the Tata Group, which controls Jaguar Land Rover through its subsidiary Tata Motors, will cut or freeze investment plans for new models. More redundancies from its 15,000-strong workforce are also likely.