Mumbai, September 11 (Patrika English News): Tata Motors is arranging a €3.875 billion ($4.5 billion) bridge loan to finance its planned acquisition of the commercial vehicle (CV) division of Italy’s Iveco Group, according to reports.
The loan, with a 12-month tenure, is supported by a letter of backing from Tata Sons, the Tata Group’s investment holding arm. Sources cited by Bloomberg said the financing carries a blended interest margin of 102.5 basis points above the Euribor benchmark.
Mitsubishi UFJ Financial Group, Morgan Stanley, and Morgan Stanley Senior Funding are reported to be acting as underwriters for the facility. Tata Motors has not issued an official statement on the matter so far.
The deal is positioned as one of Asia’s largest loan-backed acquisitions this year, underscoring a rising trend of using such financing structures to support cross-border mergers and acquisitions in the Asia Pacific region.
Tata Motors had signed an agreement in July to acquire Iveco’s commercial vehicle BUSINESS in an all-cash voluntary tender offer. The transaction does not include Iveco’s defence segment. If completed, the acquisition is expected to strengthen Tata Motors’ presence in Europe’s CV market, building on its landmark 2008 purchase of Jaguar Land Rover.
The bridge loan is expected to be refinanced within 12 to 18 months through a mix of equity and long-term debt. Completion of the Iveco deal is targeted for April 2026, subject to regulatory clearances.
The Iveco Group operates across seven brands, covering commercial vehicles, buses, powertrains, specialty vehicles, and financial services. Recently, Iveco Bus inaugurated a prototype and testing centre in the Czech Republic, highlighting its ongoing investments in innovation.