Tata Motors Ltd. is syndicating a €3.875 billion ($4.5 billion) bridge loan to fund its proposed acquisition of Iveco Group’s commercial vehicle business, according to people familiar with the matter, in what would be one of the largest such deals in Asia this year.
The 12-month borrowing facility carries a letter of support from Tata Sons Pvt., an investment holding arm of Tata Group, the people said, asking not to be identified discussing private matters. The loan pays a blended interest margin of 102.5 basis points over the benchmark Euro Interbank Offered Rate, or Euribor, they said.
Morgan Stanley, Morgan Stanley Senior Funding Inc. and Mitsubishi UFJ Financial Group Inc. are the underwriters, the people added.
Tata Motors didn’t immediately respond to a request for comment.
The planned deal would add to the rising number of loans to fund cross-border mergers and acquisitions that have originated from Asia Pacific this year. The acquisition would give Tata Motors a strategic foothold in Europe’s commercial vehicle market, boosting its presence nearly two decades after its purchase of Jaguar Land Rover in 2008.
M&A loans in the region excluding Japan have surged 70% to $31.3 billion so far in 2025 from the same period a year earlier, according to Bloomberg-compiled data.
Among the high-profile deals is Chinese e-commerce firm JD.com Inc.’s potential euro loan to help finance its proposed €2.2 billion takeover of German electronics retailer Ceconomy. Meanwhile, Abu Dhabi National Oil Co. is considering lining up more than $10 billion in debt financing for its takeover of Australian fossil fuel producer Santos Ltd.
Turin-based Iveco agreed in late July a plan to break up, selling its defense unit to Leonardo SpA and the rest of the Italian truck maker to Tata Motors in deals totaling about €5.5 billion. The acquisition by the Indian automaker is valued at about €3.8 billion.
The bridge loan will be later refinanced with a mix of equity and long-term debt over 12 to 18 months. The takeover is expected to be completed by April 2026, pending regulatory approvals.
The 12-month borrowing facility carries a letter of support from Tata Sons Pvt., an investment holding arm of Tata Group, the people said, asking not to be identified discussing private matters. The loan pays a blended interest margin of 102.5 basis points over the benchmark Euro Interbank Offered Rate, or Euribor, they said.
Morgan Stanley, Morgan Stanley Senior Funding Inc. and Mitsubishi UFJ Financial Group Inc. are the underwriters, the people added.
Tata Motors didn’t immediately respond to a request for comment.
The planned deal would add to the rising number of loans to fund cross-border mergers and acquisitions that have originated from Asia Pacific this year. The acquisition would give Tata Motors a strategic foothold in Europe’s commercial vehicle market, boosting its presence nearly two decades after its purchase of Jaguar Land Rover in 2008.
M&A loans in the region excluding Japan have surged 70% to $31.3 billion so far in 2025 from the same period a year earlier, according to Bloomberg-compiled data.
Among the high-profile deals is Chinese e-commerce firm JD.com Inc.’s potential euro loan to help finance its proposed €2.2 billion takeover of German electronics retailer Ceconomy. Meanwhile, Abu Dhabi National Oil Co. is considering lining up more than $10 billion in debt financing for its takeover of Australian fossil fuel producer Santos Ltd.
Turin-based Iveco agreed in late July a plan to break up, selling its defense unit to Leonardo SpA and the rest of the Italian truck maker to Tata Motors in deals totaling about €5.5 billion. The acquisition by the Indian automaker is valued at about €3.8 billion.
The bridge loan will be later refinanced with a mix of equity and long-term debt over 12 to 18 months. The takeover is expected to be completed by April 2026, pending regulatory approvals.
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