JLR seeks $1.3 billion loan as banks question Tata Sons chairmanship stability

Jaguar Land Rover has started negotiations with roughly eight or nine financial institutions to secure a $1.3 billion loan spanning five years. During these early discussions, a number of banks signaled they would delay any commitment until they have greater visibility on whether N Chandrasekaran will remain chairman of Tata Sons, the conglomerate that also oversees JLR. Their hesitancy stems from internal disagreements within the Tata group, notably Tata Trusts chairman Noel Tata’s opposition to the board’s decision granting Chandrasekaran a five-year extension.

Banks are assessing the proposed financing against the expected level of parental backing from Tata Sons. BNP Paribas is cited as participating in the fundraising talks. This financing effort follows JLR’s indefinite postponement of a $500 million senior unsecured bond in March, which was shelved due to global market turbulence after the U.S. attack on Iran.