As Tata's acquisition of Jaguar and Land Rover inches closer to completion, an anonymous source inside the Indian automaker has revealed that the company has secured a $3 billion loan in order to finally finance the take-over. The loan is reported to come from the banks of Citigroup and JPMorgan, although both financial firms as well as Tata have refused to comment on the reports.

Additional sources of funding for Tata could come from domestic and foreign debt markets, from which Tata could raise an additional $4 billion. That would also come in handy for investing in the production of the upcoming Nano, or even the rumored purchase of shares in Ferrari. Financial services analyst Standard & Poor's, however, is currently reviewing Tata's credit rating, which stands at a high BB+ level due to the increased debt the carmaker will inevitably incur from the acquisition of these two luxury brands from Ford.

[Source: Automotive News - sub. req'd]

Tata takes out $3 billion loan to buy Jaguar and Land Rover originally appeared on Autoblog on Tue, 18 Mar 2008 16:35:00 EST. Please see our terms for use of feeds.