Chandrasekaran is also chairman of JLR. Lenders are therefore seeking greater visibility on his continuity before committing to the financing. They are also assessing the level of parental support available to JLR as part of their evaluation of the proposed loan.
The concerns come after Tata Trusts chairman Noel Tata opposed the Tata Sons board decision granting Chandrasekaran a five-year extension.
JLR confident of raising funds
JLR is confident that it will be able to raise the funds, as developments at its parent group do not have a direct bearing on its operations, people familiar with the matter said.
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Talks are progressing on matter and there has been no impact of any leadership uncertainty on the matter, top executives close to the matter said.
“Tata group has never been impacted by such issues in the domestic or global markets,” one of the executives said.
JLR has approached banks including HSBC, Citibank, MUFG, DBS and BNP Paribas as part of the fundraising discussions.
The proposed term loan is likely to carry a fixed spread over the sterling overnight index average (SONIA). Pricing is expected to be well within 200 basis points over SONIA.
The Tata Group did not comment. Citi declined to comment, while HSBC, MUFG, DBS and BNP Paribas did not respond to ET’s emailed queries.
Earlier bond issue postponed
The latest fundraising effort comes after JLR indefinitely postponed a proposed £500 million senior unsecured bond issue in March amid volatility in global markets following the US attack on Iran.
JLR had planned to use the net proceeds for general corporate purposes, including the likely repayment of £500 million of the £1 billion drawn from a £2 billion bridge facility put in place in September 2025 during the cyberattack on JLR.
The funds were also intended to refinance notes due in January 2026 and November 2026, according to the March 18 statement from S&P Global.
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The automaker is now looking to raise fresh debt through the five-year term loan as it works on its funding requirements while the Tata Group deals with uncertainty over its leadership.
