GE Capital inked yet another 170 million pound loan deal with Tata Motors owned Jaguar and Land Rover brands. The loan is around Rs. 1300 crores in Indian currency and will be used to finance JLR operations over a period of next five years. "Today's deal is further evidence of our commitment to supporting important industries in Britain and Europe and finding funding solutions that are tailored to companies' asset portfolio," said GE Capital President and CEO for Europe, Middle East and Asia Rich Laxer.
"Having identified a large group of assets that had been underutilised we looked at how working capital can be freed up from them and we found a solution," said Rich Green, chief executive officer of GE Capital's distribution finance business. GE Capital is also in talks with other car makers for similar deals but this one still remains one of its kind.
JLR has already secured 175 million Pound loan from SBI earlier along with ABC International Bank sanctioned $90 million (Rs 420 crore). It also procured secured long term-loan of 340 million pound (about Rs 2,650 crore) from the European Investment bank. According to Tata Motors spokesperson, these loans are for working capital needs of the JLR brands and not any form of refinancing of debts acquired for acquisition of JLR.
