Jaguar Land Rover raises $705 million loan from Chinese banks
Jaguar Land Rover (JLR), owned by India's Tata Motors, has entered into agreements with lenders in China for a secured term loan facility of 5 billion yuan ($704.50 million), marking its first debt financing in China, it said.
Arthur Yu, JLR's vice president and China chief financial officer, said the Chinese banks that would provide it with the three-year revolving loan include Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank .
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The fundraising comes as the coronavirus pandemic has hit global automakers' supply chains and sales. Sales from China used to account for 25% to 30% of JLR's global sales, but over the past two months make up 50%, Yu said.
The loan facility "can help JLR China better manage cash flow amid the coronavirus epidemic", Yu told reporters on Friday.
JLR, which imports cars and also has a manufacturing partnership in the Chinese eastern city of Changshu with Wuhu-based Chery Automobile, said its China sales in April were level with same period last year, and it saw sales growth in May.
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Yu said the company expects sales of China's luxury car segment this year to be level with last year or see slight growth.