(Thu 25 Feb 10)

Tata Motors has announced that it has secured a £340 million loan from the European Investment Bank to help with the finances of Jaguar Land Rover, which it bought in June 2008.

This is an eight-year amortizing loan which will be used to fund the development of hybrid drivetrains and research into more efficient car bodies. The resulting presumed reduction in CO2 emissions explains why the loan could be made under the European Clean Transport Facility.

Guarantees for the loan have been secured from Credit Suisse, the State Bank of India, the Bank of India, the Bank of Baroda, Standard Chartered Bank, Deutsche Bank and J P Morgan.

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