25 banks likely to fund Tata Motors' JLR buy

The consortium of banks mandated to raise the $3 billion (about Rs 12,000 crore) for funding Tata Motors’ Jaguar-Land Rover acquisition is likely to consist of about 25 banks which will help distribute the financial burden amongst them.

The consortium, which presently comprises eight mandated lead arrangers — State Bank of India, Citibank, J P Morgan, Standard Chartered, BNP Paribas, Tokyo Mitsubishi UFJ, Mizuho Financial group and ING — has approached about 80 lenders in India and abroad, according to a source involved with the process.

“We are in talks with nearly 80 domestic and International banks. We are looking at expanding the size (of the consortium) to around 25, depending upon the availability of suitable partners,” the source said.

A larger number of banks in the syndication will help to comfortably distribute the financial burden, the source said, and added, “the consortium would complete the fund raising programme in the next three months.”